Huobi subsidiary receives US FinCEN operating license

HBIT, a division of the Huobi cryptocurrency exchange, has now received a Money Services Business (MSB) license from the United States Financial Crimes Enforcement Network (FinCEN).

Huobi claims this is permission to provide the groundwork for future crypto-related service supply in the US.

Additionally, the news advances it toward its strategic objective of “globalization and compliance.” The MSB license reportedly gives HBIT the go-ahead to transact in fiat currency and do business as a money transmitter.

The CoinTelegraph article also emphasizes how FinCEN will now be able to keep an eye on HBIT’s financial activity to avoid crimes like money laundering.

It is important to remember that the exchange lacks the authorization to provide crypto exchange services.

According to a news release from Huobi Technology, “after receiving this license, the brokerage firm may undertake foreign exchange (dealer in foreign currency) and money transfer (money transmitter) activities within the United States.”

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Huobi Technology is anticipated to continue offering secure and legal digital asset services to customers in the US and to maintain the pace of global company growth, according to the exchange.

One of the largest cryptocurrency exchanges in the world, Huobi, had over $1 billion worth of trading activity in the previous day.

The majority of its customers were from Russia and Ukraine as of February.

Before the crackdowns on exchanges and cryptocurrencies, most of its users were from China.

The Securities and Futures Commission of Hong Kong has also granted its Hong Kong subsidiary securities and advisory licenses.

The exchange has also disclosed its goal of setting up shop in Hong Kong as a fully regulated cryptocurrency exchange.

It is working on getting authorization to provide automated trading services and securities trading in the nation.

Following its strategic strategy, Huobi also acquired a license in New Zealand and an innovation license in the United Arab Emirates, allowing it to enter the regional tech market and benefit from favourable tax treatment.

For the time being, it is attempting to function as a full-time exchange under Dubai’s Virtual Assets Regulatory Authority (VARA).