Huobi Group, a crypto exchange platform, keeps on spreading its span across the globe as now it has got into an Overseas Territory of the U.K. – the British Virgin Islands. On Friday, Huobi formally declared that the British Virgin Islands-based Financial Services Commission (FSC) has provided him a license for investment business.
The British Virgin Islands Provides Huobi a License for Investment Business
The respective approval permits the platform to run an exchange for virtual assets under the sub-branch Brtuomi Worldwide Limited (BWL). As per the declaration, BWL has the strategy to provide several services related to crypto trading, taking into account the crypto spot trading for Ether (ETH), Bitcoin (BTC), and other such assets along with the trading of the derivatives.
The firm stands at the place of the initial operator of the trading venues for digital assets within the jurisdiction of the British Virgin Islands. It is authorized to operate an organizational-scale crypto trading venue for both retail and professional investors. Lily Zhang, the chief financial officer at Huobi Group, stated that they expect this license to provide major implications in the case of organizational investors.
According to her, their exchange will turn into the earliest platform to offer the crypto derivative goods as well as services within the respective territory while abiding by the set regulations. She added that several organizational investors operating within the crypto market are outside the British Virgin Islands, thus they sense a huge market opportunity in this respect.
No Exact Timeline Shared by Huobi for Expanding Its Services in the UK
As noted by Zhang, Huobi additionally possesses a license related to distributed ledger technology in Gibraltar territory. No precise timeline has been provided by Huobi about when the services thereof will spread out across the United Kingdom, as per the CFO.
In addition to turning into a formally regulated organization to run in the above-mentioned territory in parallel to Three Arrows Capital and Alameda Trust, BWL counts as a participant in the regulatory sandbox of the FSC.
Keeping in view the formal records of the FSC, BWL’s position is that of the 2nd member of the sandbox with having the approval from the FSC as well as a worldwide trading venue Structure Financial (that offers lending and investment in cryptocurrencies). The sandbox was founded by the regulator in 2020 while targeting at supporting innovation within the expanding sector of financial technology and permitting businesses to experiment with exclusive services and products.