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Hong Kong-based crypto exchange Huobi on Tuesday said its subsidiary HBIT Inc. has received the U.S. Financial Crimes Enforcement Bureau’s (FinCEN) Money Services Business Registration (MSB) license. The company will establish digital currency-related business in the U.S. as part of the strategic goals of globalization and compliance.
Huobi Receives the FinCEN’s MSB License
Wu Blockchain in a tweet on July 5 announced that HBIT, the brokerage business of Huobi Technology, has received the MSB license from the U.S. FinCEN.
The MSB license will enable the brokerage firm to conduct foreign exchange and money transfers across the U.S. Moreover, it ensures users get safe and compliant digital asset services in the U.S. In fact, the U.S. has maintained strict regulatory control and compliance when it comes to digital assets.
Since November 2021, the Huobi brokerage firm manages more than $430 million in transaction volume. The company currently provides services for institutions and high-net-worth individuals. The license will help further empower the development of the company’s virtual asset ecosystem.
Furthermore, the subsidiary has submitted applications for securities trading and automated trading services licenses with the Hong Kong Securities and Futures Commission. Huobi Technology’s subsidiaries have successfully managed portfolios with 100% digital assets. Licenses help companies to operate compliantly as a virtual asset trading platform in Hong Kong.
Huobi Faces Woes Amid Crypto Crisis
China’s crackdown against crypto trading and mining last year resulted in a fall in its revenues and user base. Thereafter, Thailand’s SEC had revoked the license causing Huobi to shut its operations in the country.
Extreme market conditions have forced the crypto exchange to announce plans to layoff 30% of its staff. The downsizing has been seen around the crypto space with many companies announcing layoffs. The exchange’s founder Li Lin also reportedly planning to leave the company.
However, the recent expansion to New Zealand and the UAE has provided some relief. Subsequently, the license in from the FinCEN will help grow its presence in the U.S.