Cryptocurrencies

Huobi Obtains Australia Operations Approval

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Written By: Michael Abadha
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  • Huobi Global has obtained approval to operate in Australia. We discuss this and why some crypto companies are expanding.

Huobi Global has obtained approval from the Australian Transaction Reports and Analysis Centre (AUSTRAC), following the company’s application to operate as a digital currency exchange provider. Huobi Group’s global expansion has reached yet another milestone in terms of regulatory compliance with this new development. As a first step toward offering digital currency exchange services in the country, this is a significant achievement.

The news follows a recent provisional approval of the company’s operations in Dubai. The Dubai Virtual Assets Regulatory Authority (VARA) recently granted MVP provisional approval to Huobi. This ties the company’s commitment to legal and ethical operations pending licensing.

Huobi’s expansion appetite amid fears in the tech space

Huobi may now provide Australians with access to fiat-to-crypto trading services thanks to the authorisation. Particularly, this means that users on the platform can now perform fiat-crypto and crypto-fiat transactions. Huobi’s approval in Australia is a significant win, given that the Thai Securities and Exchange Commission rejected the company’s application in June, preventing it from operating in Thailand.

Huobi has also got approvals to operate in South Korea and New Zealand; and has now set its eyes on the United States. HBIT, Huobi’s American affiliate, was granted a Money Services Business license in July 2022. In the end, it hopes to obtain full approval and licensing to provide digital asset exchange services in the world’s largest economy.

As the digital assets market attempts to rebound, it is notable that many crypto companies have shut down, while others have adopted aggressive expansion strategies. Also, some companies like Coinbase have reduced their staff numbers significantly. Besides the crypto market, the tech industry faces tumultuous times.

Some reports indicate that many tech companies are downsizing. Latest estimates indicate that as many as 30,000 tech employees may have already lost their jobs. With the crypto market showing signals of a potential rebound, it is probable that some investors could shift their investments from mainstream tech to digital assets markets. Therefore, global expansion moves by Huobi and other crypto companies could be a timely strategy.

This post was last modified on Aug 01, 2022, 14:25 BST 14:25

Written By: Michael Abadha

Michael is a self-taught financial markets analyst, who specializes in analysis of equities, forex and crypto markets. He draws his inspiration from the fact that markets provide an interface through which the world interacts in search of a better tomorrow.

Published by
Written By: Michael Abadha