Huobi's subsidiary, Huobi Asset Management, has obtained a license from the Securities and Futures Commission of Hong Kong, iHodl Russia has learned. With the license, the exchange will reportedly launch three cryptocurrency funds focused on bitcoin (EXANTE: Bitcoin), ether (ETH) and multi-strategy funds.
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Investments will be accepted in both fiat and cryptocurrencies. While the exchange did not specify what amount of financing can be attracted for the funds, it said the size of the funds is under discussion and will depend on the development of distribution channels.
Hong Kong first granted a cryptocurrency company with the financial license in August 2020. Back then, Hong Kong's watchdog issued the license to OSL Digital Securities, a unit of Fidelity-backed BC group. However, recent actions taken by Financial Services and the Treasury Bureau (FSTB) could hinder the development of the local cryptocurrency market.
As iHodl earlier reported, Hong Kong aims to tighten cryptocurrency trading for retail investors later this year. The regulatory rules proposed by FSTB could encourage not only financial crimes, but also trigger retail investors' outflow onto the gray digital platform, warns the industry body Global Digital Finance (GDF) which represents such cryptocurrency exchanges as Coinbase, Huobi, BitMEX, and OKCoin.
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