News reports showed that Huobi Exchange opened a subsidiary branch in the British Overseas Territory (BOT). Therefore, the giant exchange has become the pioneering crypto custodian in the British Virgin Islands (BVI).
Huobi Obtains License To Operate In BVI
According to the report, Huobi exchange announced that it recently obtained an operating license from the financial regulators of the BVI. The business investment license authorized Huobi to legally offer crypto services and products to investors in the territory via its new branch, Brtuomi Worldwide Limited (BWL).
Furthermore, the announcement revealed that BWL would offer spot features and derivatives trading of digital assets. Also, the exchange is the first to receive regulators backing to offer regulated crypto services to institutional and retail investors in the region.
While announcing, the CFO of the exchange, Lily Zhang, stated that his firm believed there would be a huge market opportunity in BVI as a lot of crypto institutional investors resides there; hence they decided to extend their services there.
Huobi To Extend Services Across UK Without Specific Time Structure
The executive also pointed out that Huobi has the license to offer crypto services in the Gibraltar region. Zhang also hinted that the firm does not follow a specific schedule in its mission of extending its services across the United Kingdom.
According to reports, BWL is now one of the members of the financial innovation sandbox under the FSC, alongside the troubled Three Arrows Capital. The report also revealed that BWL was the second firm to participate in the FSC sandbox.
In 2020, the FSC invented the sandbox to support startups in the fast-rising fintech industry and help their successful venture into new goods and services. Zhang also hinted that the Huobi exchange is working hand in hand with the regulators in the British Virgin Islands to ensure the residents have easy access to legal crypto products and derivatives.
The British Virgin Islands Is The Second Most Crypto-friendly Region
He added that they are both determined further to develop the crypto industry dominance in the region. In addition, the BVI is a crypto-friendly environment that condones digital assets and other financial technology activities.
Reports from PwC’s 2022 digital assets hedge funds showed that the BVI is now the second most famous environment that encourages digital assets hedge funds operations in the world after displaying the United States.
Meanwhile, a court in the region passed a liquidation judgment on Three Arrows Capital, a hedge fund firm based in Singapore, in June.