Original Compilation: Chain Catcher
Original Compilation: Chain Catcher
Core information:
Du Jun said that Huobi lost about 30% of its revenue due to its withdrawal from the mainland China market.
Huobi will return to the U.S. market, focusing on businesses such as asset management rather than an exchange.
In addition to returning to the U.S. market, Huobi is also exploring setting up its headquarters in Europe.
Du Jun praised China's strict regulatory policy on cryptocurrencies because "it protects a relatively small number of investors."
Huobi co-founder Du Jun told CNBC that Chinese cryptocurrency exchange Huobi plans to re-enter the U.S. market after more than two years of ceasing operations to comply with regulations.
But Du Jun said that after the last misstep, Huobi may not launch an exchange and instead focus on other areas such as asset management.
"In 2018, we tried to enter the U.S. market, but withdrew quickly because we did not have a firm commitment to the market at that time, and we did not have a good management team in the U.S.," Du Jun said.
“I expect asset management to become a bigger business than exchanges, which also echoes traditional financial markets.”Dujun told CNBC that he does not believe an exchange is a necessary factor for accessing the U.S. market.
Du Jun did not disclose which businesses Huobi will launch first after returning to the US market. A return to the U.S. market could put Huobi in competition with the likes of Coinbase. According to data from CoinGecko, Huobi is one of the top ten cryptocurrency exchanges in the world with the largest trading volume.
As early as 2018, Huobi launched its cryptocurrency trading business in the United States for the first time. The following year, the company said it would freeze U.S. user accounts,and calledFuture will return to the market in a "more integrated and impactful manner".
At present, in addition to the exchange business, Huobi Group also has asset management business, which is operated by Huobi Technology. Huobi Technology is a listed company in Hong Kong.
Huobi's decision to return to the U.S. market is part of a larger international expansion plan. Last year, the Chinese government introduced policies to outright ban cryptocurrency mining and crack down on regulatory loopholes that allow mainland users to transact.
Huobi has opted out of the Chinese mainland market. By the end of 2021, it will close all existing user accounts in mainland China and choose Singapore as its Asian headquarters.
Du Jun said that Huobi lost about 30% of its revenue due to its withdrawal from the mainland China market.
But it provided further impetus for the company's international expansion. In addition to returning to the U.S. market, it is also exploring a European headquarters.
secondary title
Praises China's Crypto Regulatory Policies, Other Regions Should Not Follow
Du Jun praised China's strict regulation of cryptocurrencies as it has cracked down on gambling and money laundering cases. Du Jun said,China’s crackdown on crypto protects a smaller portion of investors.But he also said other countries should not follow China's lead, as investors in other markets may be more sophisticated.
“In China, when people fail to invest, sometimes extreme people jump off the building of the regulators, investors are not mature enough. The government has taken a similar approach with the travel restrictions under the new crown virus epidemic. The government feels danger, and measures have been taken to protect the safety of the people," Du Jun said.
“In other regions, we can find that investors there are more sophisticated. They have more experience, they take responsibility in their investment decisions, so governments in those markets don’t need to take some strict measures.”
Currently, global regulators are considering regulatory rules for cryptocurrencies, including trading, taxation, and more. This month, India proposed a 30% tax on any income from the transfer of digital assets. Meanwhile, the U.S. is still figuring out how to regulate cryptocurrencies.
