Despite China’s ban on crypto trading in 2021, major exchanges are still courting Chinese customers. According to a document submitted as part of FTX‘s bankruptcy filings, 8% of the exchange’s customers are Chinese. Chinese crypto firms have also found a way to stay in business by reinventing themselves as international businesses. For example, Huobi has moved to Hong Kong, where it can continue to operate without fear of repercussions from the Chinese government. This shows that while China may have taken a hard line on crypto, Chinese firms are still finding ways to stay in the game.
Hong Kong: The Crypto Hub of Asia
Hong Kong is quickly becoming one of the most important crypto hubs in Asia. The government’s progressive policies and regulations have created a crypto-friendly environment. This allows the city to become a major player in the industry. The Hong Kong Monetary Authority (HKMA) has even gone so far as to ask banks to provide services to crypto firms. Moreover, it is in the process of introducing a licensing regime for crypto service providers.
This has resulted in a surge of crypto-related activity in the city, with many companies setting up shop in Hong Kong to take advantage of its favourable environment. With the government’s continued support, Hong Kong is set to become one of the most important crypto hubs in the world.
Huobi on Track to Become a Fully Compliant Exchange in Hong Kong
Huobi, one of the world’s largest cryptocurrency exchanges, is on track to become one of the first fully compliant exchanges in Hong Kong. This comes in the wake of China’s crypto ban. It has caused Huobi’s market share to plummet from 21.6% in 2020 to just 4% in 2022. Huobi is excited about Hong Kong’s pro-crypto policies. It is confident that they will receive authorization from the HKMA when the new licensing regime comes into effect. Huobi is committed to providing a secure and compliant trading platform for its customers. Moreover, is also confident that its efforts will be rewarded.
Huobi’s Turnaround: Accommodating Chinese Crypto Traders
Huobi has seen a remarkable turnaround in its fortunes. After taking an initial hit in 2022, Huobi has come back fighting. This is with investor Justin Sun predicting a 111 million USD profit in Q2, 2023. Huobi has also gone further than any of its competitors to accommodate Chinese crypto traders. Furthermore, making it an attractive option for investors. With its focus on the Chinese market and its commitment to providing a secure and reliable trading experience, Huobi is well-positioned to take advantage of the growing demand for cryptocurrency trading.
Huobi’s Strategic Alliance with Dominica
Huobi has taken a bold stance against Chinese authorities by limiting sign-ups from mainland IP addresses. In addition, the exchange has gone one step further by encouraging Chinese customers to apply for Dominica’s digital citizenship program as a way around the ban. This is part of Huobi’s strategic alliance with the Caribbean nation. In which includes collaborating with TRON and DMC Labs to launch the TRC-20 token Dominica Coin (DMC).
Launched in November, DMC grants holders access to Dominican digital citizenship. Huobi’s partnership with Dominica is a testament to their commitment to providing a secure and reliable platform for cryptocurrency traders worldwide.
Huobi Launches Initiative to Challenge China’s Crypto Ban
Huobi is launching an initiative to challenge China’s crypto ban. Initiative aims to create a borderless digital environment by building a digital state in the Metaverse with this initiative. According to a press release, Dominica will go beyond the geological limitation and use the program to deeply engage in the globalization process. The initiative expects to provide a platform for global users to access digital assets and services securely and efficiently. Huobi commits to providing a safe and reliable digital asset trading platform for users around the world with this initiative as a step.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
