Digital asset service provider Huobi Group is set to operate a crypto exchange in the British Virgin Islands after securing a license from the local financial watchdog.
The Seychelles-registered crypto company said Friday it secured the license from the BVI's Financial Services Commission under Huobi's regulated local subsidiary Brtuomi Worldwide Limited. Since April, Brtuomi has been one of two participants in a fintech regulatory sandbox set up by the FSC to allow companies to trial new financial solutions and services.
Huobi Group, founded in China, has been focusing on its global strategy after the country banned crypto trading and forced exchange platforms to move elsewhere. In July, a Huobi Global affiliate secured a money transfer license in the U.S. that would allow foreign exchange and money transfer operations across the U.S.
Huobi says its subsidiary has obtained an "Investment Business License" in the British overseas territory. Following the publication of the article, the BVI financial regulator confirmed to CoinDesk that Brtuomi had been granted a license to operate an "investment exchange" under the territory's Securities and Investment Business Act of 2010.
After "all conditions are satisfied" Huobi says its subsidiary will be able to operate an "institutional-grade virtual assets trading platform for both professional and retail investors" that could offer a range of services including crypto spot trading and derivatives trading.
In the announcement, Huobi did not indicate when it plans to establish the local exchange, but said it is working with regulators "to develop a suite of licensed trading products and services."
UPDATE (Sept. 21, 08:51 UTC): Adds comment from BVI financial regulator in fourth paragraph.
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