Huobi Obtains License In The British Virgin Islands, But No Date Has Been Provided For The UK

Huobi, a major cryptocurrency exchange, has entered the British Virgin Islands, a British Overseas Territory, as part of its ongoing global expansion.

Huobi formally declared on Friday that it had obtained an investing company license from the British Virgin Islands’ Financial Services Commission (FSC). With this authorization, Huobi is now able to run a virtual asset exchange through its subsidiary, Brumi Worldwide Limited (BWL).

BWL intends to provide a variety of crypto trading services, including spot trading for cryptocurrencies like Bitcoin (BTC) and Ether (ETH), as well as trading in derivatives, according to the release.

The business touts itself as the first operator of a digital asset trading platform in the British Virgin Islands with a license to manage a cryptocurrency trading platform of institutional caliber for both professional and retail investors.

“We believe that this license will have major implications for institutional investors, as it will make us the first exchange to provide compliant crypto derivative products and trading services in the territory” Huobi Group chief financial officer Lily Zhang said.

“Many institutional investors in the crypto industry operate out of the British Virgin Islands, so we think there’s a large market opportunity there.”

Huobi is also authorized to use distributed ledger technology in Gibraltar

According to the CFO of Huobi Group, there is no set timetable for when services will be extended to the rest of the United Kingdom.

BWL joined the FSC’s financial innovation sandbox in addition to being a legally recognized entity in the British Virgin Islands, joining organizations like Alameda Trust and Three Arrows Capital.

BWL is the second sandbox participant authorized by the FSC, after Structure Financial, a global trading platform that facilitates lending and investing in cryptocurrencies, according to official FSC records. The regulator created the sandbox in 2020 with the goal of fostering innovation in the expanding fintech industry and enabling companies to test out new goods and services.

“Going forward, we will work closely with the British Virgin Islands regulators to develop a suite of licensed trading products and services and foster the cryptocurrency industry’s growth in the territory” Zhang stated.

One of the main international locations for businesses involved with cryptocurrencies is the British Virgin Islands. The British Virgin Islands have surpassed the United States as the second most popular destination for crypto hedge funds, according to statistics from PwC’s fourth annual global crypto hedge fund report 2022.

A British Virgin Islands court ruled in June that Singapore-based venture capital firm Three Arrows Capital must be dissolved. According to verified information, the company is listed as a professional fund with the FSC.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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