Huobi Exchange Wins Licenses In Dubai And New Zealand

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Leading crypto exchange Huobi has acquired licensees in Dubai and New Zealand, marking the first exchange to attain licences in these nations

Leading crypto exchange Huobi has acquired licensees in Dubai and New Zealand, marking the first exchange to attain licences in these nations. The United Arab Emirates has shown a keen interest in digital assets, with the ambition to create a crypto hub in the city of Dubai. 

What Does The License Mean For Huobi?

On Friday, the Huobi Group received confirmation of the Innovation License, which is granted under the Dubai International Financial Centre (DIFC) and marks the first-ever given out. The DIFC license doesn’t grant the company the right to offer to trade, rather it allows the company to incentivize tech startups in Dubai. 

In an interview with Cointelegraph on Monday, Huobi Group CFO Lily Zhang said that “The license unlocks a number of benefits like access to the local tech ecosystem and preferential treatment for technology research and developments, capital flows and taxes.”

The plan for Huobi is to receive a Virtual Asset MVP Licence from Dubai’s Virtual Assets Regulatory Authority (VARA), which would permit the company to provide crypto exchange products and services. Zhang went on to state “We do not have other licenses in Dubai. We do have a small office there that caters to some key account and institutional customers in the Middle East region. We are, however, applying for provisional approval for a Virtual Asset MVP License from the Dubai VARA.”

With things wrapped up in the UAE, Huobi looked to New Zealand and the Financial Service Provider Register (FSPR) for approval. The FSPR is looking to expand citizens’ access to crypto trading in the country and the Huobi deal is a huge step in the right direction.

In order to operate in the country, the exchange has to run under its local entity, HBGL New Zealand Limited, offering regulated crypto trading. Huobi’s Zhang had this to say about the deal: “In New Zealand, cryptocurrencies themselves are not considered legal tender, but regulators treat cryptocurrency exchanges, brokers and other businesses offering investment opportunities much like they do other financial services providers.”

But, despite all the positive news coming out of Huobi, it’s been a difficult few months, with Huobi Thailand closing permanently in mid-June. The Thai Securities and Exchanges Commission revoked the company’s license, with the company planning to cease operating as of July 1st.

Author

Mark Weaden

Mark Weaden is a British researcher and crypto enthusiast, living in Barcelona. His work has been published on a variety of leading cryptocurrency sites.