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Justin Sun says Huobi could get Hong Kong license in 6 months

By:
on Jun 2, 2023
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  • Justin Sun predicts Huobi could secure its Hong Kong license within 6-12 months.
  • Hong Kong's crypto regulatory framework could see OKX, ByBit, Gate.io and Bitget seek licenses.
  • Sun says Huobi has no plans to enter the Canadian market, citing the country's regulatory environment.

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Huobi could be licensed as a crypto trading provider in Hong Kong by the end of the year, Justin Sun, the founder of Tron and a Huobi Global advisor has said. The Huobi Token rose briefly to trade above $3.03 before sliding lower amid broader market lull.

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Sun says Huobi HK license likely in 6-12 months

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Sun made the comment while speaking to CoinDesk TV, just days after Huobi announced its Hong Kong exchange Huobi HK. According to the Tron founder, the crypto exchange has already submitted an application for approval as a virtual asset service provider (VASP).

The application includes an 18-month “grace period”, he noted as he talked about the state of crypto regulation amid Hong Kong’s rollout of a widely praised crypto framework. Both the crypto business sector and individual investors see this as a step in the right direction. As Invezz recently highlighted, Hong Kong is one of the many crypto hubs in Asia that reflect the region’s growing status as a global destination for blockchain and crypto.

One of the key takeaways from the administrative region’s crypto-friendly approach is the news that cryptocurrency exchanges can get licenses if they wish to offer crypto trading products to retail investors.

Regulators have up to 18 months to approve or deny particular applications, Sun noted. In this period, the crypto industry will get to know of the framework’s details, including compliance requirements around customer withdrawals and AML.

But while Huobi’s application could take that long, Sun said he believes Hong Kong regulators could have feedback within the next 6-12 months. He added:

“In the next 18 months we have a grace period so Huobi Hong Kong can operate in Hong Kong, take customers, get our banking and serve our customers.”

Sun also commented on the regulatory environment in Canada, noting that Huobi does not have plans to enter the Canadian market. He cited the country’s regulatory requirements, sentiments similarly alluded to by Binance and ByBit as they announced their exits.

As for what exchanges are likely to pursue licensing in Hong Kong, he pointed to OKX, ByBit, Gate.io, and Bitget.

Binance ByBit Canada Huobi Token Tron Asia Crypto Crypto business Crypto regulation