Huobi Group has found its way back into the United States. The Hong-Kong-based company announced that it acquired a trust license from the Nevada Financial Institutions Division for its wholly-owned subsidiary Huobi Trust Company. As per the filing with the Hong Kong Stock Exchange by Huobi Technology Holding Limited:
“The board (the “Board”) of directors (the “Director(s)”) of the Company is pleased to announce that Huobi Trust Company (the “Huobi Trust”), a company incorporated in the State of Nevada, the United States and an indirectly wholly owned subsidiary of the Company, was recently issued with a Trust Company License by the Financial Institutions Division of the Department of Business and Industry in Nevada, the United States, to engage in the trust company business within the meaning of Chapter 669 of the Nevada Revised Statutes and the rules and regulations thereunder.”
It added that the Huobi Trust had not yet commenced the provisions of such trust services and advised shareholders and investors to exercise caution when dealing in the shares of the company.
In 2019, Huobi US [HBUS] had to shut operations in the country due to regulatory concerns. Now the Huobi Group wants to work in compliance with the regulations and wishes to launch its regulated financial products in the US and this newly acquired license will help it in doing so. It will be able to provide custodial and compliance services in the US market from early 2021.
According to recent reports, the Nevada-based Trust company will be led by its chief trust office, Simon Collier. Collier has acted as contract project director and global head of wealth solutions at HSBC in Hong Kong for over seven years. With the crypto businesses coming under strict scrutiny from regulators in the country, Huobi may have to take extra measures with regard to compliance.