The city of Hong Kong wants to become a virtual presence hub as soon as this summer. Justin Sun, the founder of the Tron blockchain and managing the Huobi crypto exchange, also gives the message that I am ready for this change. However, according to Justin Sun, there is another reason behind this change.
In his tweet, Sun said that Huobi will apply for a virtual asset service provider (VASP) license in Hong Kong as part of the new operating requirements that will come into effect in June. If approved, the exchange will launch Huobi Hong Kong.
Meanwhile, if a VASP license is issued, Tron founder says Houbi will launch a new exchange called Huobi Hong Kong to comply with regulators. “I am absolutely confident that Huobi will eventually get the license, as Huobi is one of the leading blockchain exchanges in the region,” Justin Sun said on Wednesday.
Ranked 15th in overall trading volume according to CoinMarketCap data, Huobi is one of the exchanges seeking a license to operate in the Hong Kong crypto market. Seychelles-based crypto exchange OKX, which ranks eighth in overall trading volume, has also applied for a license in the city.
“Beijing sees Hong Kong as one of the experimental sites for cryptocurrency,” Sun said. The Chinese government’s relationship with crypto has been turbulent. Two years ago, regulators hit crypto trading and mining. Sun thinks that China is looking at Hong Kong as a kind of experiment to see if cryptocurrencies can be regulated on the mainland. If Hong Kong succeeds, Beijing could also bring about a change of attitude. “This is why they want to see Hong Kong do it first,” Sun said. Recent developments already strengthen the possibility that China will legalize cryptocurrencies in the future.