Beijing bred cryptocurrency exchange Huobi has announced plans to open a new office in London, England. The world’s 4th largest cryptocurrency exchange by volume currently has offices in Singapore, the United States, Japan, Korea, Hong Kong and plans to further expand its footprint outside of Asia.
Huobi’s senior European business development manager said Huobi “wants to have a presence” in the city because “our statistics show that London is the most active trading scene across all of Europe”. Setting up shop in London could be the first step in planning and eventually deploying financial products and services for a European customer base and Huobi could also begin to partner with many of the global banks headquartered in the city.
Regarding cryptocurrency regulations and compliance, Chung mentioned, “we are not afraid of regulation nor are we escaption regulation.” This is positive news as Chung indicated that he wants the exchange to “go mainstream” rather than attempting to evade regulation by operating from Malta, Switzerland, or other places that have proven to be crypto-exchange friendly and unconcerned with developing stiff regulatory frameworks.
Q1 of 2018 has caused much tumult for cryptocurrency exchanges as once friendly host countries has begun developing regulatory and tax frameworks for cryptocurrency commerce while others like China have banned ICOs and crypto-fiat exchanges. Huobi relocated its headquarters to Singapore after this crackdown in 2017.
With the clouds of confusion beginning to dissipate and more clarity regarding the details of regulatory framework arising, many of the larger cryptocurrency exchanges will attempt to find ways to either negotiate or comply in order to continue and expand their business.
The fact that Huobi has stated willingness to comply with a clear set of regulations and opened have an office in a country known for bureaucracy and red tape is a definite positive. In order for crypto-markets to continue growing, all the FUD surrounding regulations, tax and the legality of crypto-commerce will need to be sorted.