As per an announcement in a local news outlet, Huobi Technology Holdings Limited has obtained a Money Service Business Registration License (MSB). The MSB license is issued by the US Financial Crime Enforcement Agency (FINCEN).
According to the press release, the license is a step forward in the Firecoin Technology compliance procedure. This will lay a solid compliance framework for future operations in the US relating to digital currency.
With this permit, the Brokerage division of Firecoin Technology can conduct deals in Foreign Exchange and Money Transfer activity throughout the United States. Additionally, the firm assures consumers in the US that they can anticipate receiving safe and compliant digital asset services from Firecoin Technology.
The MSB license will allow the company’s virtual capital ecosystem system to grow even further. Future activities of Firecoin Technology are intended to promote industry-wide compliance and mainstreaming.
Huobi attempted to enter the US markets in 2018 but quickly withdrew. They cited reasons for not being committed to markets at the time and not having a good management team in the US.
Two years ago, Huobi was inadvertently forced to leave the US market to comply with evolving legislation. As China clamped down on the crypto industry, the exchange had to terminate the accounts of mainland Chinese users by the end of 2021. It ultimately chose Singapore as its regional headquarters.
Huobi reentered the US markets in early 2022, not as an exchange but as an asset manager.
However, the firm is back in the US with its exchange platform, hoping to do better than it did previously.
To manage portfolios that invest entirely in virtual assets, Huobi’s companies have, till now, secured Type 4 (advice on securities) and Type 9 (asset management) licenses from the Hong Kong Securities Regulatory Commission (SFC). Its subsidiaries are now submitting applications for the Securities and Futures Commission of Hong Kong’s Type 1 (Trading in Securities) and Type 7 (Provision of Automated Trading Services) licenses.