Chinese Exchange Huobi Plans Re-Entry To United States

Huobi, a former Chinese crypto-exchange, wants to re-establish its position in the United States as an investment manager. It has stopped operations in China in 2019, and Huobi is now a U.S. asset manager. According to the company, asset management will be “a larger business than the exchange approach.”

Huobi’s Return

In an interview with CNBC, Du Jun, the co-founder of Huobi, revealed Huobi’s plans for the future in Monday’s interview. Du Jun said that initially, the US exchange was forced to leave the market because of a lack in commitment and poor management. The company announced in December 2019 that it would cease operations to allow it to return to a more integrated and effective manner.

The exchange closed its accounts in Mainland China last year after a crypto ban. The exchange has moved its Asian headquarters to Singapore and plans to expand into the US.

Jun said that cryptocurrency is an industry and that exchanges are just one sector of it. This is according to a Mandarin translation of his comments. There are many options. Asset management will be bigger than exchanges. This reflects the traditional finance market.

Huobi’s finances are not looking good since it stopped operating in China. It has lost 30% of its revenues since then. Jun stated that Huobi had to abandon its original strategy of exploring new markets separately and then withdrawing if it doesn’t work out. He stated that Huobi now has no choice but to go global.

Is China’s Crypto Crackdown a Beautiful Idea?

China is the most crypto-hostile country on the planet. China has a long history imposing bans on digital assets and spreading fear through markets, media, and the media. It has now expelled most of the major regional exchanges and miners, which has massively impacted Bitcoin’s hashrate last year.

Jun is an industry player that has been impacted by this enforcement but he actually respects China’s strict approach to the sector. Jun stated that they have helped to combat gambling and money laundering within the industry while also protecting inexperienced investors.

However, he does not recommend similar strategies in US regions as he believes the US investment market is more mature and can make its own investment decisions.