Huobi, the world’s sixth-largest crypto exchange by trading volume, had been given a licence by the Australian Transaction Reports and Analysis Centre (AUSTRAC) to operate as a digital currency service provider.
The move will allow Huobi to participate in Australia’s fast-growing digital assets ecosystem by operating crypto native services under full regulatory supervision and offer financial solutions to clients in new geographies. It also marks an expansion of the exchange’s core business focus after it had recently obtained licenses in New Zealand and the United Arab Emirates.
Like other developed nations, Australia places stringent requirements on cryptocurrency operators.
“We have always made security and compliance our highest priorities, as we believe that only under this principle can we grow alongside the industry to provide professional and secure services to our users,” said Huobi Group’s Chief Financial Officer (CFO) Lily Zhang.
🇦🇺 We are proud to announce that #Huobi Group has registered as a digital currency #exchange provider with the #Australian Transaction Reports and Analysis Centre (@AUSTRAC), a steady and solid step into the market.
— Huobi (@HuobiGlobal) July 29, 2022
Huobi’s enthusiastic push into foreign markets comes as multiple major exchanges pursue a global investor base. Its rival Binance announced last week that it will resume offering its futures, options, and leveraged tokens products to Australian crypto traders.
The local arm of the world’s largest crypto ecosystem, Binance Australia Derivatives, has launched over-the-counter (OTC) derivative products for wholesale customers under its Australian Financial Services Licence.
Huobi, a former ‘big three’ platform in China, has been making inroads into new regions as it anticipates a 30% revenue plunge after it has completely shut down its trading for mainland investors. The Seychelles-based crypto exchange also suspended Bitcoin mining services and sales of mining equipment in China. Additionally, Huobi moved its spot-trading business to Gibraltar.
Months before China’s latest crackdown, the exchange had already relocated substantial parts of its operations and staff out of the country. Huobi has been expanding aggressively into trading services in many other jurisdictions around the world, including Malaysia, Argentina, Russia, Korea as well as setting up an office in London.
In a different vein, Huobi terminated all of its services in Thailand in July. The move came shortly after the country’s Securities and Exchange Commission (SEC) suspended the services of Houbi and revoked its operating license. With the suspension in place, Huobi has been given three months to return all assets to its clients.