Huobi Global, one of the world’s largest cryptocurrency exchanges in terms of transaction volumes, is shutting down operations in Singapore shortly after exiting China.
The exchange will have closed the accounts of all Singapore-based users by the end of March next year, the company officially announced on Tuesday evening.
All Singapore-based Huobi Global clients are expected to close their active positions and withdraw their digital assets by March 31, 2022, Huobi said. The exchange will also phase out access to Huobi services in Singapore before March, the announcement notes.
The move is part of an effort to comply with applicable regulations from local financial authorities, the company said. According to the Huobi User Agreement, the Company’s services are prohibited for persons located in the United States, Canada, Japan, Cuba, Iran, Venezuela, Singapore, Crimea, Mainland China, Kyrgyzstan, UK and others.
In a separate statement on Nov. 10, Huobi Global told Cointelegraph that its exit from Singapore should be seen as a strategic move to pave the way for Huobi Singapore, a new entity intended to function as a platform for the exchange of digital assets regulated in the country.
Operating under Huobi Technology Holdings Limited, Huobi Singapore is building a global digital asset exchange platform and has already applied for the payment institution license under the Monetary Authority of Singapore’s Payment Services Act. . Currently, Huobi Singapore is granted an exemption from holding a license under the PS Act while the application is under review, said Huobi Global.
According to the statement, Huobi Singapore is expected to launch by the end of 2021 and will be accessible to both individuals and businesses, subject to the necessary approvals.
âWe would like to assure local users that Huobi Singapore is here to stay for good, and we are excited to launch a new platform to better meet the needs of the local market. Huobi Singapore is committed to complying with local and international regulations in order to provide a regulated and safe trading platform for retail users and businesses, âsaid Edward Chen, CEO of Huobi Singapore.
Singapore has recently emerged as a major global cryptocurrency hub, with local regulators issuing several licenses to legalize crypto trading in the country. According to Ravi Menon, managing director of the Monetary Authority of Singapore, the authority is putting in “very strict regulations” to strengthen Singapore’s position as a global crypto center.
Related:Huobi group moves to Gibraltar following Chinese crackdown
Some other global regulators recently reported on Huobi’s operations. In September, Thailand’s Securities and Exchange Commission temporarily shut down Huobi’s local subsidiary and recommended revoking its business license with the Ministry of Finance.
The news comes shortly after Huobi was forced to leave China when local authorities announced a major crypto ban in late September. As previously reported, Huobi plans to close all Chinese accounts in mainland China by December 31. Founded in China in 2013, Huobi is particularly linked to the country. Before the ban, its Chinese operations accounted for at least 30% of its total transaction volumes and revenues.