Compliance, Stablecoins, Expansion: Huobi's Three-Step Strategy in Hong Kong
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Compliance, Stablecoins, Expansion: Huobi's Three-Step Strategy in Hong Kong
Hong Kong, the wind is rising.
Navigating Web3 tides with focused insightsHong Kong, the wind is rising.
Embracing the metaverse, welcoming Web3.0, adopting DLT, integrating into the crypto world, connecting with NFTs, partnering with stablecoins, opening retail trading—Hong Kong has entered a new narrative and a new frontier, bringing boundless opportunities for entrepreneurs in this industry.
Huobi, as a key player in the crypto market, has maintained an inseparable connection with Hong Kong over its more than ten years of development, continuously telling the story of its journey alongside the city.
Hong Kong’s Past: Built on Compliance
Today, compliance in Hong Kong's crypto industry is inevitable. The opening of policies has undoubtedly boosted market confidence. Even before the 2022 "Policy Statement on the Development of Virtual Assets in Hong Kong," the region had already established a relatively comprehensive regulatory framework. Back in the chaotic era of cryptocurrency exchanges, Huobi was already part of Hong Kong’s virtual asset compliance landscape.
As early as 2019, the Securities and Futures Commission (SFC) of Hong Kong introduced its virtual asset sandbox licensing regime. Virtual asset trading platforms meeting specified requirements could voluntarily apply for licenses to conduct regulated activities under Type 1 (Securities Trading) and Type 7 (Automated Trading Services).
Since the SFC announced the virtual asset licensing system, Huobi began actively preparing its application and officially received acceptance from the SFC in July 2022. Since the sandbox regime was established in 2019, by March 2021, only four applications had been formally accepted by the SFC, indicating the high threshold for preparation and application.
In addition, in March 2021, Huobi obtained the SFC’s Type 4 (Advising on Securities) and Type 9 (Asset Management) licenses, authorizing it to carry out related regulated activities effective from July 31, 2020.
With compliance at its core, Huobi took its first step in positioning itself within Hong Kong’s crypto market.
Present Momentum: Huobi’s Bold Advance
Over the past year, Hong Kong has rolled out multiple pro-crypto policies, announcing its so-called “crypto-friendly initiatives.” These regulations mark a crucial step toward establishing Hong Kong as a digital asset hub. As a result, momentum has been building across all sectors. Huobi has long expressed strong confidence in Hong Kong’s crypto market and repeatedly indicated plans to expand operations in the region.
On February 20, Huobi launched TCNH (TrueCNH), an offshore RMB stablecoin—a move widely seen as Huobi’s strategic entry into the Hong Kong market. As one of the primary hubs for offshore RMB circulation, Hong Kong stands to benefit significantly from this launch. TCNH opens new financial opportunities for global users and helps accelerate the expansion of Hong Kong’s crypto market. Sun Yuchen, member of Huobi Global Advisory Board, stated, “We hope to contribute further within Hong Kong’s stablecoin regulatory framework.”
Shortly afterward, Sun Yuchen announced on Twitter that Huobi is preparing to apply for a Hong Kong cryptocurrency exchange license. He emphasized that this marks a significant milestone for crypto exchanges and reflects Huobi’s ongoing commitment to compliant and standardized operations. Sun also revealed that Huobi will launch a new exchange, Huobi Hong Kong, focused on serving institutional investors and high-net-worth individuals in the region.
In interviews, Sun Yuchen said, “Over the past three years, Hong Kong’s regulatory framework has undergone many positive changes, so I am full of confidence about the future of crypto compliance in Asia, Hong Kong, and even mainland China.” He further suggested that the Hong Kong government should ensure regulatory stability and predictability to attract more digital asset companies and investors.
According to Sun Yuchen, Huobi will continue expanding its presence in Hong Kong, increasing its local workforce from 50 to 200 employees by the end of this year.
After receiving clear signals, Huobi has advanced aggressively, rapidly expanding its footprint in Hong Kong. Clearly, Huobi has been ready for Hong Kong all along. Looking back and assessing the present, Huobi has risen to the occasion, executing a clear three-step strategy in positioning itself within Hong Kong’s crypto market.
Looking Ahead: Watch the Eastern Force
Reflecting on the ups and downs of the crypto market over the past decade, some analysts believe that Hong Kong may have missed the wild booms and busts of the crypto industry—and perhaps that’s not a bad thing.
FTX, founded in Hong Kong but later relocated to the Bahamas, ultimately triggered a multi-billion dollar financial disaster that dragged down the entire crypto industry. Cryptocurrency mining firms that chose to list on Nasdaq instead of the Hong Kong Stock Exchange are now mostly struggling financially and facing harsh criticism for their environmental impact.
Cameron Winklevoss, co-founder of U.S.-based compliant exchange Gemini, commented that the next bull market will originate in Asia. He believes crypto is a global asset class, and the West—particularly the United States—must either embrace it or risk being left behind. In reality, the U.S. is currently cracking down on crypto, while the East demonstrates openness and inclusivity. Sun Yuchen has also expressed optimism in Asia’s crypto market, predicting Asia will lead the recovery in this bull cycle.
The crypto industry has entered a reset phase, giving Hong Kong a valuable opportunity to redefine how a Web3.0 hub should operate. Entrepreneurs in the space now have a clearer vision of how they can participate in Hong Kong’s new narrative.
As a major participant, Huobi can leverage its existing business not only to innovate with on-chain tokens but also with real-world assets—delivering value not just to investors but to the broader public. Huobi believes that with compliance as the foundation, stablecoins as the breakthrough, and talent and innovation as drivers, it will deliver one of the most economically impactful cases for Hong Kong’s crypto technology and narrative.
From actively embracing regulatory compliance, to launching stablecoins, to foreseeable business expansion—Huobi has completed its three-step strategy in positioning itself within Hong Kong’s crypto market. But this is only the beginning of Huobi’s Hong Kong crypto story. Huobi firmly believes: Hong Kong’s future is bright!
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