Source : coinquora.com
- Chinese cryptocurrency exchange Huobi plans to enter the US market.
- Huobi had stopped operations in the US two years ago.
- In its re-entry, the exchange will focus on asset management.
After its exodus two years ago, Seychelles-based exchange Huobi announced its plans to re-enter the US market. Specifically, Huobi stopped operations after the Chinese state’s crackdown on cryptocurrencies. They also cited management issues for the closure.
“In 2018, we tried to enter the U.S. market but we quickly withdrew ourselves because we didn’t have a strong commitment to the market at that time and we didn’t have a good management team in the US,” said Huobi Co-Founder Du Jun in an interview with CNBC.
Du further stated that the cryptocurrency exchange was ready to get back into the competitive US market after redefining its strategy. He also believes that asset management is a bigger business than exchange. “It echoes the traditional finance market,” he said. However, Du did not reveal which business Huobi would launch in its re-entry to the US.
Huobi’s move into the US comes after a continuous crackdown from the Chinese government on all things crypto. In 2021, the Chinese government brought about a strict cryptocurrency ban. And even though China was home to half of the world’s bitcoin miners, Beijing called for a total halt. This forced several miners and crypto exchanges to relocate.
Despite difficulties faced, Du praised China’s tight regulation on cryptocurrencies. He believes that these regulations help tackle cases of gambling and money laundering. He also said that the government’s moves were to protect investors who were not as mature as those outside China.
Huobi is one of the top 10 biggest cryptocurrency exchanges by trading volume globally, according to CoinGecko. Once Huobi enters the US market, it will face strong competition from US-based juggernauts such as Coinbase.