Cryptocurrency exchange Huobi has received a Distributed Ledger Technology (DLT) license from Gibraltarian authorities according to a statement released by the British territory’s financial regulator this Monday.
“This announcement is yet another example of the effective road to market Gibraltar is providing for companies seeking continued innovation under the umbrella of sensible and secure regulation,” said Albert Isola, Gibraltar’s Minister for Commerce. “The robust DLT legislation we have introduced gives quality companies like Huobi a supportive framework on which they can further develop and cultivate sustainable legacies.”
Just as it has succeeded in becoming a hub for the online gaming industry over the past 25 years, Gibraltar is now trying to attract blockchain technology companies to its corner of the Iberian peninsula.
Huobi – Not the First, nor the Last, to Receive a License
Finance Magnates spoke to Isola last month at an event in Tel Aviv. At the time, the Gibraltarian minister said that we could expect to see a group of firms cross the finish line of a lengthy regulatory review process in the next couple of months.
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Those predictions have born fruit. Since our interview, a number of firms, including Coinfloor, Covesting, and the Gibraltar Blockchain Exchange, have received a DLT license from regulators in the small territory.
Now Huobi has been added to that list. Based in Singapore, the cryptocurrency exchange has offices in Japan, South Korea, Dubai, Hong Kong, and the USA.
As one of the conditions for receiving a DLT license from Gibraltar is having mind and management in the territory, the exchange will now have a presence off the southern coast of Spain too.
Holders of a DLT license can “store and transmit value belonging to others using blockchain technology.” As holders of licenses are required to meet a number of different requirements akin to financial regulation, clients are more likely to trust a company that has one.