Crypto exchange Huobi plans re-entry into US market

    Chinese cryptocurrency exchange Huobi plans to re-enter the US market, but with an asset management focus. The US re-entry is part of a major global development goal, a further break from China’s regulations. In addition, Huobi plans to set up headquarters in Europe, co-founder Du Jun said.

    In an interview with CNBC, Du noted that the Seychelles-based company may eschew launching a US crypto exchange in favor of targeting different areas such as asset management.

    “I expect asset management to be a bigger business than exchange, which echoes the traditional finance market as well,” Du said. “I don’t think exchange is a necessary element for entering the US.”

    Huobi first entered the US market in 2018, but the venture was short-lived, with the exchange ceasing operations the following year.

    “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,” explained Du.

    With more than $2 billion in trading volume over the last 24 hours, Huobi is currently the sixth-largest crypto exchange, according to CoinMarketCap.

    The company has gone through some testing times though; last year it was forced out of China, following the country’s crackdown on the crypto industry.

    According to Du, exiting China cost Huobi about 30% of its revenue – but it also gave the company impetus for its international expansion.

    “We have no other choice but to use our full strength to go forward in our global strategy,” Du said.

    Aside from the US market, Huobi is also exploring a possibility of setting up a headquarters in Europe, he added.

    While Du did not specify which business Huobi will launch first if and when it makes a return to the US market, the company already owns an asset management unit listed in Hong Kong.

    Regulators are currently considering global rules for trading and taxing cryptocurrencies. For example, India has proposed a 30% tax on any income from the transfer of digital assets. The US, on the other hand, is still in the process of finding how to regulate cryptocurrencies. Despite the staff and resources, it may have to deploy, Huobi is ready for the world stage again.

    The US re-entry is part of a major global development goal, a further break from China’s regulations. In addition, Huobi plans to set up headquarters in Europe.

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