chinese governmentAfter the strict regulations of the coin, it has become very difficult for businesses that provide services related to cryptocurrency to survive. These regulations caused many businesses to relocate their headquarters to countries outside of China, and the United States, especially in mining, received the most share from these relocations. However, Huobi, one of the leading cryptocurrency exchanges in China, was preparing to rejoin the US markets, according to co-founder Du Jun.
Huobiwas forced out of the US market indirectly to comply with changing regulations two years ago, and at the end of 2021, it had to close the accounts of existing mainland Chinese users and choose Singapore as its Asian hub.
“We tried to enter the US market in 2018, but at that time we had to withdraw quickly because we didn’t have a strong commitment to the market and we didn’t have a good management team in the US.”
Speaking in an interview with CNBC, the CEO of Huobi revealed that the company will focus on asset management rather than serving as the stock market after the missteps it made last time. He further said:
“I expect asset management to be a bigger business than a stock market that also reflects the traditional financial market. I don’t think the stock market is a necessary element to enter the US.”
Wealth management is getting hotter in the United States due to the growing interest from institutional investors. According to a comprehensive research report by Market Research Future, crypto asset management market was valued at $455.3 million in 2021 and is expected to reach $1,807.9 million by 2028.
While Huobi hasn’t made it clear which business or service it plans to re-enter the United States with, it looks like it will ignite some competition among existing crypto businesses in the country. Despite withdrawing from the United States and China, Huobi remains among the top 10 crypto exchanges in terms of global trading volume.
Also, Huobi appears poised to keep its promise to return in a more “holistic and effective way” as it owns a Hong Kong-listed asset management business called Huobi Tech.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.