Subsidiary of crypto exchange Huobi gets FinCEN license in US

Huobi’s subsidiary HBIT, one of the major crypto exchanges, has received a Money Services Business (MSB) license from the Financial Crimes Enforcement Network (FinCEN) of the US. This will help Huobi provide crypto-related services in the US. HBIT has been permitted to transfer funds and operate as a normal currency exchange.

In addition, HBIT’s financial transactions will be monitored by FinCEN to prevent crimes including money laundering, CoinTelegraph reported. However, HBIT does not have permission to offer crypto exchange services. “Once this license is granted, Huobi Technology’s brokerage business will be able to provide foreign exchange and fund transfer services in the US. The firm can then provide secure and compliant digital asset services,” Huobi said in a press release.

Huobi, one of the largest crypto exchanges in terms of trading volume, has had most of its users from Russia and Ukraine since February. Earlier, a large number of its users were from China. Crypto activities were banned in China last year. Since then, there has been a major impact on the business of crypto-related firms in China. Huobi’s Hong Kong subsidiary has also received a securities and advisory license from the Securities and Futures Commission of Hong Kong. It plans to launch a crypto exchange in Hong Kong. It is also applying for Automated Trading Services and Securities Trading Services in Hong Kong. In addition, the exchange also has licenses in New Zealand and the United Arab Emirates.

The crypto market has been in decline for the past few months. This has hurt investors as well as the firms associated with this segment. The value of Bitcoin, the largest cryptocurrency by market capitalization, is down about 57 percent and Ether’s by about 71 percent in the first six months of this year. Interest rate hikes and slowdowns by the Federal Reserve in the US and central banks in some other countries are the main reasons for the decline. Many firms in the crypto segment are also taking measures such as layoffs to reduce costs.

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