- Huobi re-enters US market through its licensed subsidiary
- Authorities in the country are still enforcing stringent regulations
After withdrawing from the US in 2019, popular Hong Kong based crypto exchange firm, Huobi Group, has confirmed that it has successfully re-entered the US market through one of its subsidiaries, Huobi Trust Company.
The subsidiary firm has just been licensed by financial authorities in Nevada to offer crypto services.
A filing made by the group in Hong Kong Stock Exchange, stated that the Trust company would be able to open up custodian services for institutional investors by next year.
It is expected that the firm would be headed by Simon Collier who has over seven years of experience working with HSBC.
The firm stated that its new operations in the US is in line with its goal of expanding its services to a more heterogeneous audience.
Huobi Group has a change of heart
It would be recalled that Huobi Group had earlier withdrawn its former subsidiary operating in the United States in 2019 noting concerns about the uncertainty surrounding regulations. The firm claimed its withdrawal then was a step towards making its operations more compliant to the law of the land.
However, the group has been attempting to re-enter the US market through various means.
Earlier this year, Ciara Sun, a top executive of the group had said that the firm was looking at the possibility of working with a brokerage in the US so as to enable it to continue its business.
US Regulators still enforcing strict regulations
Authorities in the United States appear to be in no mood to relax their stringent measures on crypto firms operating in the country.
Ripple is set to face an impending lawsuit against the Securities and Exchange Commision (SEC) based on its native token. While some other crypto exchange firms are facing a huge level of difficulty in acquiring licenses for their businesses.