Huobi Group, the company behind major global crypto exchange Huobi, is planning to return to the United States with a new license secured from local regulators. After ceasing operations in the U.S. later last year, Huobi seems to be interested in opening a trust company business in the country. Trusts are companies tasked with managing assets for a group of owners or investors. Grayscale’s trusts use this structure to offer cryptocurrency exposure within traditional markets.
Huobi Trust has not yet started providing any related trust services.
Huobi Technology Holdings announced that the company’s Nevada-incorporated business Huobi Trust had received a Trust Company License from the Financial Institutions Division of the Department of Business and Industry in Nevada. The executive director of Huobi Lan Jianzhong noted that Huobi Trust has not yet started providing any related trust services. “Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company,” the executive wrote in the announcement. Huobi exchange officially ceased operations in December 2019. The exchange had closed operations in the country because of the American regulatory ecosystem.
Nevada-based Trust company will be led by its chief trust office Simon Collier.
The Nevada-based Trust company will reportedly be led by its chief trust office, Simon Collier. Collier has acted as contract project director and global head of wealth solutions at HSBC in Hong Kong for over seven years. With the crypto businesses coming under strict scrutiny from regulators in the country, Huobi may have to take extra measures with regard to compliance. Huobi Group wants to work in compliance with the regulations and wishes to launch its regulated financial products in the U.S. This newly acquired license will help it in doing so.
