One of the world’s largest digital asset service providers, Huobi Group, intends to set up shop in the British Virgin Islands as the first Digital Asset Trading Platform Operator in the Territory after successfully obtaining an Investment Business Licence from the Financial Services Commission through its subsidiary Brtuomi Worldwide Limited.
In a recent statement Huobi Group Chief Financial Officer Lily Zhang said that the landmark approval from the FSC was a testament to Huobi’s experience, professional knowledge and track record in the global cryptocurrency industry.
The company was reportedly one of two participants in a fintech regulatory sandbox, established by the FSC, since April of this year.
According to the Financial Services Commission, the sandbox was part of efforts to meet its mandate to develop supervisory frameworks that are proportionate and relevant.
It allowed the FSC to accept participants to test innovative financial solutions within a controlled environment.
The regulatory sandbox aimed to, among other things, provide participants with regulatory clarity on whether a new financial product or service complies with legal and regulatory requirements; and provide the FSC with the opportunity to engage with and understand various innovative products and services to determine the appropriate regulatory approach.
Huobi has not yet confirmed a date for when it intends to establish a local exchange aspect but has indicated that it is working alongside the necessary regulators to develop a suite of licensed trading products and services.
It is expected that once all conditions are met for its operation, the company will perform a variety of services as a virtual assets trading platform for professional and retail investors, and licensed financial institutions from all over the world.
These assets include Cryptocurrencies such as Bitcoin and Ethereum, derivatives such as Perpetual, and other products.
For the Houbi Group, its expansion to the BVI is integral to its global strategy – developed after China, where the company was founded, banned crypto trading and forced the company out of its home market.