Houbi, a Chinese crypto exchange platform, has concluded plans to re-enter the US financial market. The re-entry resulted from the exchange’s two years’ absence from the US money market to comply with regulations.
According to the report made available to CNBC by Du, the Chinese crypto exchange, after much deliberations, has considered a re-entry into the US financial market. The exchange platform ceased operations two years ago to comply with the US regulations guiding its financial markets.
Du Jun, one of the company’s Co-founder, stated that in 2018, the exchange platform made its first attempt to penetrate the US market but reconsidered its decision. The withdrawal was necessary because, at that time, the company lacked a viable management team and a solid commitment to the markets.
Huobi Considers Asset Management
Though the company was not explicit on their choice of business on re-entering the US market, a statement from Du gave a hint. According to the Co-founder, he believes that asset management will be a more profitable venture than exchange.
In his opinion, the exchange business mirrors the traditional financial market. Therefore, an exchange may not be necessary to penetrate the US financial market. The Huobi Chief maintained that the re-entry into the US financial market is part of the bigger plan of expansion internationally.
Regarding the above, it was very much unclear the exchange’s first step of business as they plan to re-enter the US financial markets. However, in line with the opinion of Du, it seems the company will focus on asset management and expand with the exchange business.
Houbi Ranks Among the Top 10 Exchanges Globally
Huobi is among the top 10 biggest crypto exchanges according to trade volume globally. That notwithstanding, they are bound to face fierce competition and rivalry in the US market from companies like Coinbase and Nasdaq.
Huobi’s first cryptocurrency exchange was launched in the US in 2018. the launch was accompanied by an announcement of the company’s decision to freeze US customers’ accounts the following year. However, Huobi promised to return to the US market fashionable, impactful, and grand style.
Huobi’s return to the US market is pursuance of its commitment to the expansion program initiated by the company. Given the years of strict regulations of crypto activities by the Chinese government, Huobi and other similar companies have embarked on a mission of expansion into other countries in Asia, Europe, and America.
The Chinese company has an exchange and an asset management business known as Huobi Tech and is listed in Hong Kong. Last year Huobi selected Singapore as its Asian headquarters.
According to Du, Huobi lost about 30% in revenue from closing mainland Chinese customer accounts. He, however, added that the loss had energized the company to expand as it is exploring opportunities to establish headquarters in Europe and now the US market re-enter. They have also praised China’s strict cryptocurrency regulations, as this has reduced the incidence of fraud and market failures.