Chinese Exchange Huobi Plans Re-Entry To United States Focused On Asset Management

Huobi

Huobi – a former Chinese crypto exchange – wants to re-establish itself in the United States as an asset manager after ceasing operations in the region in 2019. The company expects asset management to be “a bigger business” than the exchange approach.

The return of Huobi

Company co-founder Du Jun revealed Huobi’s new plans in an interview with CNBC on Monday. He said the exchange initially exited the US market due to a lack of commitment and a poor management team in the region. In December 2019, the company abruptly announced that it would be “going out of business so it can come back in a more integrated and impactful way.”

However, the exchange recently closed accounts for its existing users in Mainland China following an outright crypto ban in the country last year. It has since taken its Asian headquarters to Singapore, with plans to expand back into the US and Europe.

“Cryptocurrency is a big industry, and exchanges are just one part of this industry, which is the most exposed,” Jun said, according to a Mandarin translation of his comments. “There are a lot of possibilities. I expect asset management to be a bigger business than stock exchanges, which also reflects the traditional financial market. »

Huobi’s finances haven’t looked good since ceasing operations in China, losing 30% of its revenue ever since. Given the circumstances, Jun said that Huobi has had to abandon its initial strategy of exploring new markets individually, and withdrawing if they don’t work out. “Now, Huobi has no other choice but to go global,” he said.

Do you admire the crypto crackdown in China?

China is one of the most crypto-hostile countries on the planet. It has a long history of banning digital assets, sowing fear in markets and the media. Now it has outright kicked most miners and major exchanges out of the region, massively damaging Bitcoin’s hash rate last year.

Despite being an industry player impacted by such enforcement, Jun actually respects China’s heavy-handed approach to the industry. He said they’ve helped tackle gambling and money laundering in the space while protecting small and inexperienced investors.

That said, he doesn’t recommend similar approaches in regions like the United States because the investment market is “more mature” and can take responsibility for its investment decisions.

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