Justin Sun Confident in Huobi’s Future as Hong Kong’s VASP License Approaches

By 0xGorki On Mar 1, 2023

Hong Kong’s Securities and Futures Commission (SFC) has been working closely with Justin Sun to establish a suitable framework for cryptocurrency trading in the region. According to Sun, the founder of TRON, Huobi, a leading cryptocurrency exchange, is expected to receive licensing approval from the SFC to operate as a Virtual Asset Service Provider (VASP) on March 1.

🇭🇰 @justinsuntron, Huobi Advisor, sheds light on Huobi acquiring a HK service provider license, #crypto regulation, and the industry’s potential for progress and prosperity.

Full details: https://t.co/1OXTok5Gos pic.twitter.com/2elzsXwe4D

— Huobi (@HuobiGlobal) March 1, 2023

As per regulations set by the Financial Action Task Force (FATF) to combat money laundering and terrorist financing, all virtual asset service providers were required to apply for a VASP license before March 1. The application process included relevant assessments, testing, and record-keeping practices.

Sun believes that the regulatory framework in Hong Kong is favorable for the cryptocurrency industry. He emphasized that customer expectations on regulatory compliance are high and having appropriate regulations would benefit the industry as a whole.

Speaking to CNBC, Sun expressed his confidence in Huobi receiving a VASP license from the SFC. He said, “I’m 100% confident that Huobi will get the license, as they are one of the leading blockchain platforms in Asia.”

In outlining the licensing process for VASPs, Sun also revealed that Huobi would become the first crypto exchange to introduce a tiered pricing system, offering users lower fees based on the amount of Huobi tokens held on their platform.

Huobi’s expected licensing in Hong Kong follows a series of regulatory hurdles the cryptocurrency industry has faced in the region. While China has clamped down on cryptocurrency trading, neighboring jurisdictions such as Hong Kong and Singapore are seeking to establish regulatory frameworks for digital assets.

Huobi’s successful licensing would provide a strong signal that Hong Kong is open to supporting the crypto industry, positioning the city as a hub for cryptocurrency trading in Asia.

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