Huobi Crypto Exchange Comeback to US After Winning Nevada Trust License

Huobi Crypto Exchange Comeback to US After Winning Nevada Trust License

Huobi US (HBUS), another legal entity related to Huobi Group, ceased its operations in December 2019 citing regulatory concerns. The company said at the time the departure was meant to be the next step in making its businesses more compliant with U.S. laws and regulations. Now, Huobi Group is making its U.S. comeback. 

Huobi Tech was acquired by Huobi Group founder and CEO Leon Li, via a reverse takeover in 2018. Li stated that a trust license has been approved by the Nevada Financial Institutions Division for its wholly owned subsidiary, the Huobi Trust Company, according to its Tuesday filing with the Hong Kong Stock Exchange.  

HBUS is a digital asset trading platform operated by HBUS Holdco, Inc. (“HBUS”), a U.S. company and strategic partner of Huobi Global, one of the world’s largest digital asset trading and management service providers.

Located in San Francisco, HBUS operates the platform under the highest of ethical standards with a commitment to U.S. legal compliance.

The U.S. license will enable the company to offer custodial and compliance services in the U.S. market early in 2021. The move is part of Huobi Group’s efforts to launch regulated financial products and services in the United States. 

The move comes at a time when the U.S. regulators, including the U.S. Department of Justice and the U.S. Securities and Exchange Commission, are imposing stricter scrutiny over international crypto exchanges that run businesses in the country. 

Most global cryptocurrency exchanges still face difficulties in acquiring licenses from state regulators in the U.S., especially for their fiat-crypto trading businesses.