While the cryptocurrency space is currently growing, and many affiliates are currently expanding their products and services line, the need for proper regulation remains paramount. The need for proper regulations around the Blockchain space cannot be understated, as many analysts believe it will strengthen the trust and public belief in the space.
However, Huobi Global Limited, a crypto exchange currently affiliated with Huobi Global, is the latest to face the ax over license issues. While the crypto exchange is affiliated with the trading assets company Huobi Global, it does not have a license to trade in the country, Seychelles Financial Services Authority (FSA) warns its citizens.
Huobi Global Limited is not licensed in Seychelles, according to Seychelles FSA
The warnings have come at the back of torrid last 12months in the country, which had witnessed many crypto scams in the country. However, Seychelles FSA believes that while Huobi Global, a popular renowned crypto exchange and crypto trading platform, has an international license to conduct business anywhere, they do not possess their native license to operate under their terrain. The statement released yesterday by the Seychelles FSA’s spokesperson has now issued a warning to anyone doing business with the unlicensed company in the country.
Seychelles FSA, the apex regulatory body in the country, has also assured the citizens that, in the case of any loss, it will not provide any form of support for investors and traders conducting business with the unlicensed company. However, while the Seychelles FSA’s statement was released on Monday 8th, February 2021, Huobi Global Limited has responded to the financial regulator’s claim yesterday to believe that there is a mixup somewhere.
The company believes that it is a registered entity under Huobi Group, registered under the Seychelles FSA. It also believes that their international reputation will not permit them to operate under any nation without authorities’ appropriate licenses. However, the press release also assures its customers that they are currently working on fixing the misunderstanding and will rectify it as soon as possible.
Seychelles is one of the most crypto-friendly spaces
However, while the ongoing saga between Seychelles FSA and Huobi Global Limited continues to be an issue of debate, it is worthy to note that Seychelles is one of the most crypto-friendly spaces in the world. The nation is a firm admirer of Blockchain technology and cryptocurrency trading. BitMEX is one of the many crypto exchanges that the country currently hosts. The East African country also hosts OKEx, a popular Malta-based crypto exchange, and they are currently licensed under the Seychelles FSA.
Binance is another exchange that has found a home in the East African country, with Binance even registering an investment platform two years ago. However, the current tussle between the country’s regulatory body and Huobi Global Limited does not imply that they are shifting their stance away from crypto, as it is believed that the country will continue to partner with many more crypto firms in the future.