Financial authorities around the world are ramping up regulations on the crypto industry. This should be welcomed by all but the most die-hard crypto fans. Increased regulation introduces rules and standards that make it harder for bad actors to commit fraud and encourage widespread adoption.
In the U.S., behind-the-scenes negotiations are underway to divvy up crypto regulation responsibilities between the many competing agencies under the federal government. These include the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Assets Control (OFAC) and Office of the Comptroller of the Currency (OCC).
Halfway around the world, Hong Kong and Singapore have announced in recent weeks that authorities are looking into regulations, both at a product level for the listing of virtual asset exchange-traded funds (ETFs), and at the exchange level, potentially establishing firm requirements for crypto exchanges to operate. In Europe and Australia, regulators have also publicly announced that discussions to set up crypto regulations are underway.
But regulating the digital asset markets presents a dilemma: How can you maintain the original ethos of crypto – peer to peer, permissionless decentralized markets – while also submitting them to the yoke of a central regulatory authority? And how can the crypto markets be regulated in a way that is different from that of traditional financial markets?
Navigating this period requires a partner that embraces the need for regulation, while also understanding crypto technology and the broader industry. Huobi Technology Holdings Limited is committed to becoming the leading one-stop compliant virtual asset service platform in Asia. It currently offers a unique mix of both technology and financial services, including data center services, cloud-based services and SaaS, as well as virtual asset management, custody, trust and other related services.
One of Huobi Tech’s subsidiaries has been approved to conduct Type 4 (advising on securities) and Type 9 (asset management) regulated activities by the Securities and Futures Commission of Hong Kong. Two of Huobi Tech’s other subsidiaries have also been successfully registered as a licensed trust company in Hong Kong and a licensed retail trust company in the U.S. state of Nevada, respectively. Huobi Tech is also applying for more virtual asset and finance-related licenses in major markets around the world.
So what does Huobi Tech actually do? Take a look:
- Huobi Asset Management (Hong Kong) Limited is the second asset management company in Hong Kong to obtain regulatory approval to manage 100% virtual asset (VA) funds. So far, it has created a variety of asset management products and services for professional investors, including a multi-asset fund, a BTC tracker fund, an ETH tracker fund, a crypto mining fund and the first multi-strategy VA fund in Hong Kong. It’s also the first licensed asset management company in the market that allows investors to subscribe and redeem in fiat currencies or virtual assets.
- Huobi Trust HK (Huobi Trust Company Limited) is a registered trust company under the Trustee Ordinance in Hong Kong. It provides customers with compliant virtual assets custody services. Huobi Trust HK adopts practice-proven security solutions, industry-leading multiple protection mechanisms and military-grade hardware modules, fully protecting the security of its customers’ assets.
- Huobi Trust US (Huobi Trust Company) is a Nevada retail trust company licensed and subject to regulatory oversight by the Nevada Financial Institutions Division. The company is regularly audited and operates in accordance with compliance standards required for Nevada licensed trust companies. Huobi Trust US primarily provides crypto asset custody services for assets such as the HUSD stablecoin reserve. The reserve is held under Huobi Trust US custody and is independently audited by a certified public accountant firm in the United States.
- Huobi Lending provides an over-the-counter crypto-backed lending solution, satisfying institutional clients’ demand for optimizing asset liquidity.
Through the development of its blockchain and virtual asset ecosystem, Huobi Tech is now a fully compliant one-stop virtual asset service platform in Asia, and a key partner for many institutional customers in the cryptocurrency industry. With its comprehensive suite of licenses, Huobi Tech has formed a virtual assets closed-loop ecosystem that integrates cloud, data center, SaaS, asset management, trust, custody and brokerage services.
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