Justin Sun Convicted Of Fraud Making Huobi Hard To License In Hong Kong

Key Points:

• Justin Sun’s entanglement in US fraud allegations will make it difficult for Huobi to obtain a license in Hong Kong.
• Although Huobi is not named in the SEC lawsuit, lawyers say the US regulator’s action will make it more difficult for the Hong Kong Securities and Futures Commission (SFC) to approve the VASP’s application.
• The regulator will have to wait and see. After much scrutiny of every detail, the lawyers involved believe that Huobi’s registration process could be greatly delayed.

US fraud charges against Justin Sun could set back a plan for Huobi, where he is a global adviser, to obtain a license to operate in Hong Kong, securities lawyers said.

As mentioned in the previous article, on March 22, the United States Securities and Exchange Commission (SEC) filed a lawsuit against Justin Sun, accusing him of selling and issuing unregistered securities, fraudulently fraud, and market manipulation.

The SEC it is said in an announcement that it is suing Sun, Tron Foundation, BitTorrent Foundation, and BitTorrent (now known as Rainberry) for selling tronix (TRX) and bitTorrent (BTT) tokens since August 2017. as unregistered crypto asset securities.

Although Sun Yuchen believes that the fraud allegations brought against him by US regulators will not affect Huobi Global’s application for a license in Hong Kong, according to the lawyers involved.

Although Huobi does not appear in the lawsuit, the action of the US regulator will make it more difficult for the Hong Kong Securities and Futures Commission (SFC) to approve Huobi’s VASP application.

According to the lawyers, the regulator will have to wait. After many detailed checks, the lawyers involved believe that Huobi’s registration process may be greatly delayed.

Earlier, Sun revealed Huobi’s plans to move its Asian headquarters as Hong Kong positions itself as an Asian digital asset hub, taking a more business-friendly stance than the US and Singapore.

Under the licensing framework that will take effect on June 1, Hong Kong will allow retail investors to trade cryptocurrencies. Only professional investors with assets of at least HK$8 million ($1.02 million) are allowed to trade cryptocurrencies on either of the city’s two licensed exchange platforms.

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