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Seychelles debunk reports Huobi operates in the country

Seychelles

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TL;DR

TL;DR Breakdown

  • FSA says Huobi not licensed to operate in Seychelles.
  • When Binance faced similar treatment from Malta.

Seychelles’ Financial Services Authority (FSA) has denied any claims that top crypto exchange firm Huobi Global operates in the country. The country announced that the exchange does not hold any license to undertake any business activity in its jurisdiction.

However, checks by Cryptopolitan shows that Huobi headquarters is located in Seychelles according to Wikipedia.

Seychelles defines Huobi as an international business company according to a statement the government released. They state further that it appears to be affiliated with Huobi Global, an online platform for trading virtual assets. The FSA said they came to this conclusion based on information available in the public domain. The authorities further warned that investors and members of the public should exercise caution regarding the services these firms provide.

Seychelles, a trading hub for crypto firms

The African country hosts several top crypto exchange firms. Bitmex is one crypto exchange firm Seychelles currently hosts. The firm got immersed in legal disputes with the US Commodity Future Trading Commission (CFTC) recently where the exchange was charged with money laundering and operating illegally in the US, promoting their exit to Africa.

Another crypto exchange that does business in the African country is OKEx. The exchange operates from the African country but is based in Malta. For Malta residents and Italians, OKEx uses different Terms of Service agreements, so the crypto user’s buy is held by Aux Cayes, a company based in Seychelles.

When Binance faced similar treatment

In 2020, the Malta government also publicly said that the number one crypto exchange, Binance, was not regulated in the country. Malta’s Junior Minister for Financial Services and Digital Economy, Bartolo Clayton, affirmed that Binance has never been licensed in the jurisdiction.

Binance CEO Changpeng Zhao reacted to the news stating that the news was old and that Binance “has several regulated entities around the world, either operated by partners or by Binance.com directly.”

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Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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