Cryptocurrency exchanges are an integral part of the overall ecosystem. That is not surprising, even though it’s also a point of weakness. Most platforms can’t scale properly, which leads to outages. Additionally, such companies often face regulatory scrutiny. Huobi, for example, was once based in Beijing. Ever since the government crackdown, the company is now moving to Japan. This is all part of a new partnership with SBI Group.
In a way, it’s good to see Huobi is still around. The company faced some issues in China throughout 2017. The local government halted all CNY-based trading for cryptocurrency exchanges several months ago. Companies still need to make money, however, which means they need to find alternative solutions. For Huobi, that solution comes in the form of migrating to Japan. Thanks to a new deal with SBI Group, the parent company of this exchange will move overseas.
Huobi and SBI Holdings Join Forces
Moreover, it seems two new trading platforms will be launched soon. One is called Huobi Japan, whereas the other is known as SBI Virtual Currencies. Do keep in mind these names are still subject to change, as nothing has been set in stone yet. It is quite interesting to see a Japanese bank partner with a Chinese cryptocurrency company. In other parts of the world, such an “unholy” partnership would be unthinkable. Japan is rather open-minded when it comes to cryptocurrencies, though, and it has paid off in spades already.
As one would expect, this new partnership has some basic requirements. The agreement mentions how a maximum daily transaction volume of 30 billion CNY is in place. Additionally, there will be around 1.65m user accounts. Whether or not these measures can be achieved quickly, is a big unknown at this time. Operating a major cryptocurrency exchange will not be easy whatsoever. At the same time, global demand for cryptocurrencies is still on the rise. An interesting year lies ahead for all companies involved, that much is certain.
It is evident Japan is one of the major cryptocurrency hubs right now. Whereas China once held the crown, the local government turned its back on cryptocurrency trading with CNY. That decision forces companies to seek help abroad. Japan welcomes such companies with open arms, by the look of things. It will be interesting to see what all of this means for Huobi itself. Gaining a foothold in another Asian country is always significant.
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