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Huobi plans to return to the U.S. after closing down in China

Updated: Jul 25, 2024
Published: Feb 22, 2022
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Chinese crypto exchange Huobi is planning to re-enter the U.S. market, months after it shut down its business in China.

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Huobi plans to re-enter U.S. market

One of Huobi's co-founders told CNBC that Huobi plans to re-enter the U.S. market. Earlier this year, Huobi had sought to move its Chinese employees overseas after Chinese authorities initially cracked down in May. As a result, Huobi is again considering entering the U.S., which the company was previously familiar with back in 2018 when it entered and exited the country in December 2019, citing regulatory concerns.

Huobi is already among the top 10 most prominent cryptocurrency exchanges in the world by trading volume, according to CoinGecko, but the exchange lost about a third of its revenue from September to December 2021 when it shut out accounts in China to comply with a Sept. 24 ban on crypto transactions in the country. A move back into the U.S. market could put Huobi back in competition with companies like Coinbase and FTX US.

Why does Huobi want to return to the US?

Most governments are currently considering global rules for trading and taxing cryptocurrencies. For example, India has proposed a 30% tax on any income from the transfer of digital assets. On the other hand, the U.S. is still in the process of finding how to regulate cryptocurrencies. It seems like this plays a significant role in why Huobi wants to re-enter the U.S. markets.

Huobi has not commented on which business it will launch first when it returns to the U.S. market. The company already has a Hong Kong-listed asset management unit. In addition to the U.S. market, Huobi is also looking at establishing a headquarters in Europe.

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