Huobi, one of the largest cryptocurrency substitution platforms in China, appears to be pursuing further expansion of its business organization following the recent regulatory clearance in Hong Kong.

According to an official announcement by Huobi Applied science Holdings Ltd., the company's asset direction subsidiary has secured approval from the Hong Kong Securities and Futures Commission to launch a cryptocurrency asset management portfolio.

The news is a follow-up to Huobi securing "Blazon 4" and "Type 9" licenses from the SFC back in July 2020. In Hong Kong, a Blazon iv license enables a company to act equally a securities investment adviser while a Type 9 license covers asset direction.

Dubbed Huobi Asset Management, the firm is now looking to launch 3 cryptocurrency asset funds following the approval by the SFC, according to reports in Chinese media. Withal, the launch will be contingent on the fund complying with additional provisions issued by the SFC.

Tweeting on Thursday, Beijing-based reporter Colin Wu remarked that Huobi'southward entry into the crypto asset management arena may incentivize institutional investors in Asia to consider crypto investments.

Wu also stated that Huobi's planned crypto asset management fund will include both Bitcoin (BTC) and Ether (ETH).

According to information from crypto inquiry firm Messari, Huobi is second only to Binance in terms of existent spot trading volume.

Huobi'south crypto asset management license from the SFC comes amid reports that regulators in Hong Kong are close to banning retail crypto trading. Indeed, Huobi is amongst a grouping of global cryptocurrency exchanges challenging the legitimacy of the motion.

Following China's ban on crypto trading and initial money offerings in 2017, several Chinese exchanges moved their offices elsewhere with Hong Kong and Nippon beingness favored destinations at the fourth dimension.