The cryptocurrency market is expanding because many people are gaining knowledge about the market. For that reason, more exchange companies are required to increase competition and also efficiency. Huobi which is operated in China has officially registered with the US government to operate as a money services business ahead of its planned entry into the crypto trading.
According to the US regulator’s database, HBUS was registered with the Financial Crimes Enforcement Network on 21st March. Huobi had already stated in January that it was planning to open an office in San Francisco. According to the company, they were planning a grand entrance into the American market.
The founder of Huobi group LI Lin who is also the CEO of the company confirmed that there is a plan to launch a crypto exchange platform through a WeChat announcement. The CEO indicated that the platform would target US investors, but the platform will be separate from the current crypto platform Huobi pro.
The Company’s chief operations officer Robin Zhu had also stated that having a US exchange would be a major plank in the company’s expansion plans. He also stated that they had already solved all the major regulatory issues. The latest FinCEN registration shows how that is a great move following the Chinese government’s crackdown in 2017.
Li has however stated that registering with the US financial watchdog does not solve all the regulatory issues that are associated with operating in the United States. According to Li: “It’s true that at the moment there is no clear regulatory requirement for crypto-to-crypto trading platforms from the federal level in the US. We will operate like other platforms like the Poloneix which operate while registered as a money services business.” Poloneix is an exchange that was recently acquired by Circle.
In conclusion, Li stated that he believes that the US Securities and Exchange Commission will weigh in on the issue associated to crypto-to-crypto traded in the United States stating that Huobi would be willing to comply with all the guidance required.