Huobi Live Discusses the Cryptocurrency Market Amid Security Turmoil and Regulatory Opportunities: Upholding Compliance Operations and User-First Principles
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Huobi Live Discusses the Cryptocurrency Market Amid Security Turmoil and Regulatory Opportunities: Upholding Compliance Operations and User-First Principles
In the future, HTX will uphold secure and compliant operations, prioritize user satisfaction, and continuously monitor and adapt to evolving market dynamics.
Navigating Web3 tides with focused insights
On June 6, crypto KOLs 0xWill, NihaoVand, DAOctor Who, Dr. k., and dylancz.eth joined Huobi's live stream. The session, themed "From Security Storms to Regulatory Dividends: Where Is the Crypto Market Heading?", explored the impact of Hong Kong’s regulatory policies and the U.S. Financial Innovation and Technology for the 21st Century Act (FIT21 Act, i.e., HR 4763) on the crypto industry, as well as how Huobi HTX safeguards user asset security in this new era of regulation.
Can Hong Kong Become a Crypto Haven?
It is widely known that Hong Kong has drawn significant market attention over the past two years due to its openness and inclusiveness toward cryptocurrencies. However, with the conclusion of exchange licensing procedures in Hong Kong and nearly all major native crypto exchanges exiting the competition, the crypto community has expressed deep disappointment. Can Hong Kong still become the long-anticipated crypto haven?
During the livestream, 0xWill noted that Hong Kong imposes high compliance requirements, including various licenses, and restricts access to institutional investors, raising concerns among offshore institutions.
NihaoVand analyzed that he remains skeptical about the Hong Kong government’s stance on cryptocurrency, suggesting that Hong Kong might eventually become merely an arbitrage market. He pointed out that compliance in Hong Kong is extremely difficult, and the market is largely institution-driven, making it challenging for retail investors to survive. Under these conditions, while there remains a possibility of legal action against USDT, any resulting selling pressure would likely be limited.
DAOctor Who expressed optimism about Hong Kong’s potential as a crypto asset management hub but believed exchanges would struggle to survive there. While suitable for institutional investors, Hong Kong offers little appeal to retail participants—especially after the U.S. opens up trading, further shrinking Hong Kong’s competitive space. Overall, Hong Kong’s regulatory framework lacks comprehensive planning; although it draws heavily from traditional financial regulations, it may be overly strict.
Dr. k. stated that during the Hong Kong exchange licensing process, authorities appeared reluctant to include exchanges with mainland Chinese backgrounds. Hong Kong aims for healthy industry development and broader participation. As a testing ground for mainland China, Hong Kong will inevitably loosen its regulations in the future. Currently, neighboring countries and regions are actively embracing Web3, which could push Hong Kong to accelerate its pace.
What Impact Will the FIT21 Act Have on the Crypto Industry?
At the end of May this year, the Republican-led FIT21 Act passed in the U.S. House of Representatives on May 22 local time—the first bill attempting to comprehensively define how the United States should regulate the crypto market.
0xWill believes the passage of the FIT21 Act was driven by Grayscale’s successful lawsuit. In the future, the U.S. will become more welcoming to the crypto market. The regulatory intent is twofold: maintaining market order and protecting investors.
DAOctor Who pointed out that the passage of the FIT21 Act will shift the landscape of U.S. regulatory dynamics, making the country more crypto-friendly. In the future, many digital assets will be classified as commodities, removing them from SEC oversight. U.S. regulation will significantly influence project tokenomics, thanks to the country’s position as home to the world’s largest crypto market.
dylancz.eth analyzed that U.S. regulators remain cautious toward decentralized exchanges, and regulation may become stricter. In the future, “pump-and-dump” projects and meme coins may face stronger compliance demands. Meanwhile, centralized crypto services in the U.S. will carry greater risks, whereas decentralized projects appear relatively safer.
Additionally, regarding the impact of the U.S. presidential election on the crypto market, NihaoVand believes the final outcome will not affect crypto price trends. Dr. k., however, argues that Trump often acts inconsistently—his pre-election and post-election stances may differ drastically. Given this uncertainty, future crypto hotspots may not lie in the U.S., but rather in Southeast Asia.
In the Era of Regulation: Huobi HTX Upholds Compliance and User-Centric Principles
The guests also discussed widely and with great interest the recent incident where Bybit suddenly opened registration to Chinese users, even allowing real-name KYC verification using Chinese ID cards.
Huobi HTX stated that since its inception, it has consistently adhered to compliant operations across global jurisdictions, securing licenses in Japan, South Korea, and other regions. Moreover, it has established deep partnerships with sovereign nations like Dominica and globally recognized enterprises such as Visa.
Notably, in 2023, Huobi HTX served as the virtual asset exchange partner for TRON and DMC Labs, fully supporting the launch of the Dominica Metaverse Digital Identity (Dominica Digital Identity, DDID). Users holding DDID enjoy multiple benefits, including use as KYC identification on major trading platforms, opening bank or financial accounts under local laws, registering companies offering digital services, and enrolling in KYC identity services.
Huobi HTX emphasized that to ensure platform user asset security, it maintains a 100% reserve ratio at all times. Going forward, Huobi HTX will continue to prioritize secure and compliant operations, place user satisfaction first, and continuously monitor and adapt to evolving market dynamics.
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