Huobi recently became the latest cryptocurrency exchange to gain provisional approval from the Dubai Virtual Assets Regulatory Authority, according to a statement from the company. The provisional approval allows Huobi to offer virtual asset trading products and services to “pre-qualified investors and professional financial service providers”.
Spot and OTC services are limited to pre-qualified investors
Asian cryptocurrency exchange Huobi has become the latest digital asset servicing company to receive provisional approval from the Dubai Virtual Assets Regulatory Authority (VARA). According to a statement released by the exchange, the approval empowers Huobi’s United Arab Emirates (UAE)-based entity to offer “a comprehensive suite of virtual asset exchange products and services.”
Before giving its approval to Huobi, VARA had granted another provisional license to Seychelles-based crypto trading platform OKX. In addition, prior to this, the regulator had issued approvals or licenses at Binance, FTX and Coinmena.
Meanwhile, in a statement, the crypto exchange said it would target so-called professional investors. Regarding spot and over-the-counter (OTC) trading services, Huobi said they will be extended “to a limited subset of pre-qualified investors and professional financial service providers.”
Establishment of regional headquarters
Huobi also suggested that obtaining the provisional license paves the way for the establishment of the regional headquarters of the exchange in Dubai. In remarks following the granting of the provisional license, Huobi Group Chief Financial Officer Lily Zhang said:
The Government of Dubai is committed to making the emirate a global hub for the future digital economy and to be at the forefront of financial innovation. Huobi is optimistic about the potential of the city and the future opportunities it offers.
Zhang added that his organization seeks to work to “promote the growth of the virtual asset industry there.”
Apart from VARA’s license, Huobi said in the statement that it has also secured licenses in other regions such as South Korea, Japan and Gibraltar.
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