By Nathan Ferguson
HBIT Inc – a sub-branch of crypto exchange named Huobi – has obtained a Money Services Business (MSB) license given by the U.S. Financial Crimes Enforcement Network (FinCEN).
Huobi – which is based in Seychelles – stated on 5th July that the license provides the core structure for the exchange to perform its crypto-related operations within the United States in the coming time, as included in the strategic objectives thereof dealing with compliance and globalization. The exchange is considered to be a prominent player within the industry and has a volume of up to $1B during the recent 24 hours, as per CoinGecko.
In advance of the enormous crypto crackdown launched on behalf o the authorities in China, the majority of the Huobi consumers were from China, however, the exclusive figures from Statista show that – in February this year – a great number of users belonged to Ukraine and Russia. With the MSB license, the subsidiary of Huobi is permitted to transfer funds as well as run as an exchange of the fiat currency, a needed move made by the regulators within the United States to guarantee that FinCEN can oversee the financial crimes taking into account money laundering among the others.
Nevertheless, the exchange is not permitted by the license to offer its services related to crypto-exchange requiring a license for money transfers. It notes that it expects that in the future it will provide consumers within the United States to have digital asset services that will be compliant with the laws. it was stated by Huobi that the subsidiaries thereof within Hong Kong have additionally obtained securities advising and asset management-related licenses from the Securities and Futures Commission of the country.
In the meantime, the sub-branches are procedurally moving to apply for a license permitting them to deliver automated securities trading as well as the other trading services to turn into a completely law-abiding crypto exchange across Hong Kong. On 21st June, the United Arab Emirates and New Zealand governments provided licenses to the exchange. The former was categorized as an Innovation License – rather than a trading license – permitting the platform to reach the native tech industry as well as receive special treatment in the case of tax.
At the moment, as Lily Zhang – the chief financial officer at Huobi Group – mentioned, the venue has a strategy to gather the license thereof to deliver its complete package of the services related to cryptocurrencies under the Virtual Assets Regulatory Authority (VARA) of Dubai.