By
Chimamanda U. Martha
March 27th, 2024
According to reports, the MSB license grants HBIT the approval to transmit money and operate as a fiat currency exchange.
The United States Financial Crimes Enforcement Network (FinCEN) has finally granted a Money Services Business (MSB) license to HBIT Inc, a subsidiary of the Huobi crypto exchange. This, according to Huobi, is a permit to lay the foundation for the future provision of crypto-related services in the US. The announcement also brings it closer to its strategic goal of “globalization and compliance.”
According to reports, the MSB license grants HBIT the approval to transmit money and operate as a fiat currency exchange. This also put it under the supervision of FinCEN, to be able to monitor its financial activities to prevent crimes including money laundering. It is important to note that the exchange does not have the approval to operate crypto exchange services.
“After obtaining this license, the brokerage business of Huobi Technology can conduct foreign exchange (Dealer in Foreign Exchange) and money transfer (Money Transmitter) operations throughout the United States,” said Huobi in a press release. “In the future, Huobi Technology is expected to further provide users in the United States with safe and compliant digital asset services and consolidate the momentum of international business expansion,” the exchange added.
Huobi is one of the biggest crypto exchanges in the world with over $1 billion in volume in the last 24 hours. As of February, most of its users originated from Russia and Ukraine. Before then, the majority of its users came from China until the crackdowns on exchanges and cryptos. Its subsidiary in Hong Kong has also obtained securities and advising licenses from Hong Kong’s Securities and Futures Commission. The exchange has also revealed its plan of becoming a fully compliant crypto-exchange in Hong Kong. It is in the process of obtaining approval to provide automated trading services and securities trading in the country.
Huobi, under its strategic plan, has also obtained a license in New Zealand as well as an innovation license in the United Arab Emirates to access the local tech industry while getting advantage of special tax treatment. For now, it is working to operate as a full-time exchange under Dubai’s Virtual Assets Regulatory Authority (VARA).
Regardless of its development, it saw its Thai license revoked on June 16 for non-compliance with local regulations. It was also reported that it is seeking to lay off 30% of its staff with the founder, Lil Lin attempting to sell his 50% stake.
“Huobi founder Li Lin is looking to sell his stake in Huobi. Li Lin currently holds more than 50% of the shares. The second-largest shareholder of Huobi is Sequoia China. Huobi’s revenue plummeted after it wiped out all Chinese users and is laying off staff,” said Wu Blockchain.