Huobi logo on smartphone screen against the background of the main cryptocurrencies.

Huobi secures FinCEN license as it eyes US expansion

Huobi, one of the world’s largest exchanges, has inched closer to serving American traders after obtaining a license from the country’s anti-money laundering watchdog.

In an announcement on WeChat, the Seychelles-based exchange revealed that it had successfully obtained the Money Services Business Registration License (MSB), which is issued by the U.S. Financial Crimes Enforcement Bureau (FinCEN). Operating under the U.S. Treasury Department, FinCEN is charged with combating domestic and international money laundering and terrorist financing.

The license was issued to HBIT Inc., a subsidiary of the exchange.

“This is another progress in the compliance process of Huobi Technology, creating a good compliance foundation for the company to carry out digital currency-related business in the United States in the future,” Huobi stated.

The MSB license allows a recipient to transmit or convert money, and in Huobi’s case, allows it to be a fiat currency exchange. However, to provide its core business, digital asset exchange services, it will have to obtain a money transmitter license, also issued by FinCEN.

“In the future, Huobi Technology is expected to further provide users in the United States with safe and compliant digital asset services and consolidate the momentum of international business expansion,” the exchange added.

The new U.S. license comes after the exchange obtained licenses in Dubai and New Zealand. With the latter, Huobi had become registered by the country’s financial watchdog to offer over-the-counter trading and asset management services.

In Dubai, Huobi obtained the Innovation License under the Dubai International Financial Centre, allowing it to tap into the country’s tech ecosystem and benefit from special tax rates. The exchange intends to apply for other licenses that will enable it to offer other digital asset services in the region.

But even as it expands elsewhere, Huobi is shutting down in Thailand after its license was revoked by the country’s Securities and Exchange Commission.

Meanwhile, Huobi’s Japanese subsidiary listed BSV last month, availing the digital currency to one of the largest markets in the world.

Watch: The BSV Global Blockchain Convention panel, Better Payments with BSV

New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.

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