Singapore stock exchange exit paves way for Huobi Singapore to establish itself as a regulated stock exchange in the country
Only recently exiting crypto-hostile China, crypto exchange Huobi Global announced on Tuesday that it would be exiting the Singapore market in an effort to comply with regulatory requirements. The global exchange has banned its services to the United States, Canada, Singapore, Crimea, Mainland China, Taiwan, Hong Kong, Israel, Iraq, Bangladesh and many other territories as a result of ‘an agreement of July 26. Now, crypto-friendly Singapore has joined the list of these restricted jurisdictions.
“Huobi Global has always been committed to providing digital asset trading services while complying with all applicable laws. To comply with Singapore laws, we will need to include Singapore as a restricted jurisdiction. Unfortunately, this means that Huobi Global can no longer offer services to users based in Singapore, “ a post read.
A statement confirming the decision said all Singapore-based users would be kicked from its platform by March 31, 2022. The exchange also explained that it will explore more regions abroad to make up for the lost number. users when exiting.
Latest development comes weeks after exodus from China
Leaving China has been forced by an increasingly degraded view of the government on crypto and crypto-related businesses, with strict regulations established. Huobi wasn’t the only crypto entity to leave in response to China’s actions, however.
The exchange apparently anticipated the Chinese government’s action and had, months before, shifted a substantial part of its business from China to Singapore. Singapore’s compliance requirements on Huobi forced the exchange out of another Asian region. Huobi had applied for the license of the payment services law (PSA) in the country and at the time was granted a temporary exemption from holding a license under the PSA law.
A silver lining at the exit
The exchange noted in a different statement that the exit should be seen as strategic as it would now create an opening for Huobi Singapore, a separate holding company that intends to be regulated in the country to operate in digital assets. The new exchange is awaiting approval of its license application from Singapore’s central bank, the Monetary Authority of Singapore.
Huobi Global has confirmed that the launch of the new exchange will likely take place before the end of the year, subject to specific approvals.
“We 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 regulations and international to provide a regulated and secure trading platform for retail and business users ”, Huobi Singapore CEO Edward Chen said.