Huobi Subsidiary Receives FinCEN License of Operation in the US: Here's What It Means

Huobi believes the FinCEN license would create a foundation for it to carry out operations in the US.

By Shomik Sen Bhattacharjee | Updated: 7 July 2022 12:33 IST

Huobi Subsidiary Receives FinCEN License of Operation in the US: Here's What It Means

Photo Credit: Facebook/ Huobi Group

The company can transmit fiat currencies with the license

Highlights

Huobi is among the largest crypto exchanges in the world
The license allows HBIT to operate as a fiat currency exchange
Huobi has obtained licenses in several countries so far

The United States Financial Crimes Enforcement Network (FinCEN) has finally granted a Money Services Business (MSB) license to HBIT, a subsidiary of the Huobi crypto exchange. This, according to Huobi, is a permit to lay the foundation for the future provision of crypto-related services in the US. The announcement also brings it closer to its strategic goal of "globalisation and compliance." According to reports, the MSB license grants HBIT the approval to transmit money and operate as a fiat currency exchange.

The CoinTelegraph report also highlights that the development puts HBIT under the supervision of FinCEN, to be able to monitor its financial activities to prevent crimes including money laundering. It is important to note that the exchange does not have the approval to operate crypto exchange services.

"After obtaining this license, the brokerage business of Huobi Technology can conduct foreign exchange (dealer in foreign exchange) and money transfer (money transmitter) operations throughout the United States," said Huobi in a press release. "In the future, Huobi Technology is expected to further provide users in the United States with safe and compliant digital asset services and consolidate the momentum of international business expansion," the exchange added.

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Huobi is one of the biggest crypto exchanges in the world with over $1 billion in volume in the last 24 hours. As of February, most of its users originated from Russia and Ukraine. Before then, the majority of its users came from China until the crackdowns on exchanges and cryptos.

Its subsidiary in Hong Kong has also obtained securities and advising licenses from Hong Kong's Securities and Futures Commission. The exchange has also revealed its plan of becoming a fully compliant crypto-exchange in Hong Kong. It is in the process of obtaining approval to provide automated trading services and securities trading in the country.

Huobi, under its strategic plan, has also obtained a license in New Zealand as well as an innovation license in the United Arab Emirates to access the local tech industry while getting advantage of special tax treatment. For now, it is working to operate as a full-time exchange under Dubai's Virtual Assets Regulatory Authority (VARA).

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