Huobi Group is setting up a trust company in Nevada after closing down the U.S. subsidiary in 2019
Huobi Group, the company behind major global crypto exchange Huobi, is apparently planning to return to the United States with a new license secured from local regulators.
After ceasing operations in the U.S. in late 2019, Huobi seems to be interested in opening a trust company business in the country. Trusts are companies tasked with managing assets for a group of owners or investors. Grayscale’s trusts use this structure to offer cryptocurrency exposure within traditional markets.
According to a Dec. 22 announcement by Huobi Technology Holdings, the company’s Nevada-incorporated business Huobi Trust has received a Trust Company License from the Financial Institutions Division of the Department of Business and Industry in Nevada.
Lan Jianzhong, executive director of Huobi, noted that Huobi Trust has not yet started providing any related trust services. “Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company,” Jianzhong wrote in the announcement.
Huobi did not immediately respond to Cointelegraph’s request to provide additional information about the development.
Huobi US, or HBUS, the operator of United States-based crypto exchange Huobi, officially ceased operations in December 2019. The move came shortly after Huobi Global announced that it would freeze all U.S. client accounts by mid-November. The exchange said that the event was caused by issues related to American regulatory ecosystem.
The exchange has been putting effort into tapping new markets over the world in recent years. In November 2020, Huobi Global, Huobi Group’s flagship crypto exchange headquartered in Singapore, announced a new entity Huobi Labuan to launch trading services in Malaysia. In August, Huobi announced a wide array of measures to expand its presence in Russia.