Top crypto exchange Huobi Group is planning to return to the US market after suddenly leaving in 2019. Based on its Tuesday filing with the Hong Kong Stock Exchange, the exchange said the Nevada Financial Institutions Division has also approved a trust license for the subsidiary Huobi Trust Company.
With the license, the company can offer compliance and custodial services in the U.S. market from 2021. It will coincide with the exchange’s plan to toll out regulated financial products and services in the US.
A trust company manages the assets of a group of investors. An example is the Grayscale trusts, which use the structure to provide crypto exposure within the traditional market.
Returning to the US
The executive director of Huobi Lan Jianzhong commented on the development. He, however, added that the exchange has not resumed any trust or related services yet. Jianzhong said potential investors and stakeholders should be cautious when dealing with the company’s shares.
When contacted for further comments about Huobi’s comeback move to the US, he didn’t respond immediately.
When Huobi US ceased operations in the US last year, the exchange said it took decisions due to the hash regulatory environment. At the time, the firm said the departure is the right step to make its businesses more compliant with the US laws and regulations. Since its departure, the company has been trying different ways to make a comeback into the US market. Earlier in April this year, Ciara Sun, Huobi Group head, pointed out that the exchange is considering partnering with a fully regulated brokerage to operate its businesses in the country.
The press statements shred by the company revealed that Simon Collier, the firm’s chief trust officer, will lead the Nevada-based Huobi Trust Company.
On the other hand, a former chief compliant officer at Prime Trust Aja Heise will head the compliance program of the firm.
Regulatory concerns for global crypto firms in the US
The move came when the law enforcement agencies in the U.S. are imposing stricter rules and regulations on cryptocurrency exchanges and other crypto-based companies. The Securities and Exchange Commission (SEC), in particular, has sanctioned numerous crypto-based firms based abroad.
A lot of global crypto exchanges are still facing issues getting licenses for their fiat-crypto trading businesses from the US authorities.
The largest global exchange by trading volume, Binance, announced in June that it will only provide crypto services to US residents when they follow the terms and KYC procedures of the exchange.
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