Huobi Technology, a Hong Kong-based company acquired by Huobi Group, announced today that its wholly-owned subsidiary Huobi Trust Company has gained a license from the Financial Institutions Division of the Department of Business and Industry in Nevada, US.
The official filing available on the website of the Hong Kong Stock Exchange shows that the new license will enable Huobi to offer cryptocurrency services in the US under a regulated environment. The company is expected to launch its custodial services in 2021.
Huobi exited the US market last year after abruptly ceasing operations in December 2019 citing regulatory concerns. The recent announcement indicates that the company is planning to launch its operations under a regulated environment to remove uncertainties.
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“The board of directors of the Company is pleased to announce that Huobi Trust Company (the ‘Huobi Trust’), a company incorporated in the State of Nevada, the United States and an indirectly wholly-owned subsidiary of the Company, was recently issued with a Trust Company License by the Financial Institutions Division of the Department of Business and Industry in Nevada, the United States, to engage in the trust company business within the meaning of Chapter 669 of the Nevada Revised Statutes and the rules and regulations thereunder,” the company mentioned in the filing on Tuesday.
US Cryptocurrency Regulations
The crypto community expressed concerns regarding the regulatory uncertainty in the US. Ripple CEO Brad Garlinghouse said that the SEC is set to attack cryptocurrencies with a lawsuit against Ripple soon. Several cryptocurrency exchanges mentioned that the Internal Revenue Service (IRS) issued notices to their users due to the absence of a clear regulatory framework for digital assets. Huobi plans to make a cautious comeback in the US with the latest approval.
“Huobi Trust has not yet commenced provision of any such trust services as at the date of this announcement,” the official document states.