Huobi receives a license in the British Virgin Islands, although the UK is not yet on the schedule

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Last Updated on September 11, 2022 by Bitfinsider

Huobi, a major cryptocurrency exchange, has entered the British Virgin Islands, a British Overseas Territory, as part of its ongoing global expansion.

Huobi formally declared on Friday that it had obtained an investing company license from the British Virgin Islands’ Financial Services Commission (FSC). With this authorization, Huobi is now able to run a virtual asset exchange through its subsidiary, Brumi Worldwide Limited (BWL).

BWL intends to provide a variety of crypto trading services, including spot trading for cryptocurrencies like Bitcoin (BTC) and Ether (ETH), as well as trading in derivatives, according to the release.

The business touts itself as the first operator of a digital asset trading platform in the British Virgin Islands with a license to manage a cryptocurrency trading platform of institutional caliber for both professional and retail investors.

Chief Financial Officer of Huobi Group, Lily Zhang said: “We believe that this license will have major implications for institutional investors, as it will make us the first exchange to provide compliant crypto derivative products and trading services in the territory.” She further stated: “Many institutional investors in the crypto industry operate out of the British Virgin Islands, so we think there’s a large market opportunity there.”

Zhang mentioned that Huobi is also authorized to use distributed ledger technology in Gibraltar. According to the chief finance office, Huobi Group does not have a set schedule for when services will be extended to the rest of the United Kingdom.

BWL joined the FSC’s financial innovation sandbox in addition to being a legally recognized entity in the British Virgin Islands, joining organizations like Alameda Trust and Three Arrows Capital.

“Going forward, we will work closely with the British Virgin Islands regulators to develop a suite of licensed trading products and services and foster the cryptocurrency industry’s growth in the territory,” Zhang added.

One of the main international locations for businesses involved with cryptocurrencies is the British Virgin Islands. The British Virgin Islands have surpassed the United States as the second most popular destination for crypto hedge funds, according to statistics from PwC’s fourth annual global crypto hedge fund report 2022.

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