Huobi eyes US expansion with new FinCEN license Huobi eyes US expansion with new FinCEN license
Huobi says the license provides a good foundation for its digital currency-related businesses in the United States.
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Updated: Jul. 5, 2022 at 5:23 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Huobi said July 5 that its subsidiary HBIT received a license from the U.S. Financial Crimes Enforcement Bureau’s (FinCEN) Money Services Business Registration (MSB) to operate in the country.
The license provides a good foundation for the exchange’s digital currency-related businesses in the U.S., according to the press statement.
Financial institutions like crypto exchanges in the U.S. need the MSB license to conduct foreign exchange and money transfers in the country.
Apart from that, the license ensures that service providers are safe and compliant with the laws of the land.
Huobi’s US foray
Huobi’s first attempt in the US market ended abruptly in 2018 because it did not have a good management team.
In February, the exchange cofounder Du Jun revealed plans to re-enter the country’s market as an asset manager after it was forced to close the accounts of mainland Chinese users because of regulatory demands.
Huobi picked Singapore as its new headquarters for the Asian region and eyes further expansion into Europe.
Rumors swirling around Huobi
Meanwhile, there are rumors that Huobi is planning to downsize its workforce amidst the market downturn.
China-based crypto-journalist Colin Wu claimed the company wanted to lay off 30% of its workforce.
EXCLUSIVE: Cryptocurrency exchange Huobi will start layoffs, which may exceed 30%. The main reason is the sharp drop in revenue after the removal of all Chinese users. Previously, Bybit also announced a layoff plan. pic.twitter.com/jbRG2Aew5G
— Wu Blockchain (@WuBlockchain) June 28, 2022
The exchange’s revenue has been hit due to closing its China operation and losing its Thailand license.
There are reports that the founder, Li Lin, wants to sell his stake in the company. Lin currently has over 50% stake in the crypto firm.
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Huobi, a virtual asset exchange, launched a revised branding strategy on September 13, 2023, where “Huobi” will be rebranded as “HTX.” “H” stands for Huobi, “T” represents TRON with a commitment to being all in TRON, and “X” stands for the exchange.