Following the approval of a DLT license for Gibraltar Blockchain Exchange, the Singapore-based digital currency exchange Huobi has been granted the same authorization by the Gibraltar Financial Services Commission (GFSC).
Huobi, one of the largest virtual currency operators in the world, has obtained a full Distributed Ledger Technology (DLT) license by the financial watchdog in Gibraltar, a British Overseas Territory and headland on Spain’s south coast.
Huobi was founded in China but was forced to spread its wings to more crypto friendly jurisdictions. The company now has offices in Japan, South Korea, Hong Kong, United States, and Gibraltar. The operator is publicly listed in the Hong Kong exchange (HKEX) since August 2018 after a reverse takeover which had Huobi acquiring a 74% stake in electronics manufacturer Pantronics Holdings.
The firm founded by Leon Li processed around $1 billion in trades daily as of March 2018, Huobi reported. The full DLT license awarded to Huobi will help the cryptocurrency exchange expand its business in the European Union and set up operations in such fiscally friendly jurisdiction.
The Hon Albert Isola MP, Gibraltar’s Minister for Commerce, said:
“This announcement is yet another example of the effective road to market Gibraltar is providing for companies seeking continued innovation under the umbrella of sensible and secure regulation. The robust DLT legislation we have introduced gives quality companies like Huobi a supportive framework on which they can further develop and cultivate sustainable legacies.”
The Gibraltar Blockchain Exchange (GBX) has recently obtained the same DLT license from the Gibraltar regulator. The granting of the license means that the Gibraltar Stock Exchange (GSX) has become the first stock exchange to own a regulated blockchain exchange, GBX, which is an institutional-grade token sale platform and Digital Asset Exchange.
Gibraltar’s DLT legislation was introduced in January 2018 and defines the regulatory framework for businesses using blockchain. After completing the application process, Huobi and GBX can now store and transmit value belonging to others using distributed ledger technology. Both cryptocurrency exchanges can now engage with regulators and benefit from the flexible framework that allows room for guidelines to evolve in tandem with the blockchain sector.