The MSB license will allow it to operate as a fiat currency exchange in the United States

Huobi subsidiary receives FinCEN license

06.07.2022 - 14:15

475

2 min

What’s new? A subsidiary of cryptocurrency exchange Huobi called HBIT Inc has received its Money Services Business (MSB) license from the US Financial Crimes Enforcement Network (FinCEN). According to representatives of Huobi, the license will be a step toward running a cryptocurrency business in the States, as part of its strategic goals of “globalization and compliance.”

Huobi’s statement

What is the essence of the license? The MSB license allows Huobi’s subsidiary to operate as a fiat currency exchange. Having the license implies that FinCEN will be able to monitor financial crimes such as money laundering.

However, the approval does not allow the platform to provide crypto-exchange services, this requires a money transmitter license. The company expects to provide a digital asset service for US users in the future.

What is known about Huobi? It is a digital asset trading platform founded in 2013 in Beijing. Currently, it is based in Seychelles, it also has offices in Hong Kong, South Korea, Japan, and the US. The exchange has its own token called Huobi Token (HT), which is used to receive fee discounts, as well as additional rewards and bonuses. The daily trading volume of the platform as of July 6 is $1б02 billion, according to CoinMarketCap.

Earlier, journalist Colin Wu reported that Huobi co-founder Li Lin planned to exit the company and intended to sell a controlling stake, he owns more than 50%.

On June 17, Huobi co-founder Du Jun, together with a Chinese investor in Web 3.0 startups known as BMAN Li, launched the $400 million ABCDE Capital fund to support crypto projects.

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy