Huobi Enters U.S. Market Via Strategic Partnership with HBUS
The competition between cryptocurrency exchanges is intensifying. Industry players are introducing new features, faster liquidity, and even entering new demographics. The latest to make an aggressive push is Huobi, the world’s third-largest cryptocurrency exchange as per traded volume.
HBUS Not a Direct Huobi Subsidiary
As per an official blog, Huobi entered U.S. shores in June 2018, after a “strategic partnership” with HBUS. The company is headquartered in San Francisco, and aims to “promote transparency and trust.”
The company intends to expand in the region aggressively, and seek out partnerships with blockchain projects. The company is making use of fee discounts and promotional giveaways, in a bid to attract initial clientele.
HBUS made clear its affiliation with Huobi:
“HBUS is not an “arm,” “subsidiary,” “division,” or any type of “affiliate” of Huobi. Nor is HBUS to be referenced as “Huobi US” or any variant thereof. HBUS is the “exclusive US strategic partner of Huobi,” and Huobi is “the world’s leading provider of virtual currency-related services.”
In April 2018, BTCManager reported on Huobi’s plans to shift to the U.S., specifically San Francisco. Huobi initially announced its intention to open an office in that city in January 2018.
Customers Lured Via Promotions
HBUS said that it would be attractive to customers because of its user-friendly interface and the wide selection of cryptocurrencies.
For the first 30 days of operation, HBUS will charge no fee to its users. Besides a bitcoin (BTC) promotion, which started on June 4 and ends on June 15, provides a chance for users to win 0.1 BTC, provided they deposit a minimum of $1,000.
Contrary to recent reports which suggest that a majority of cryptocurrency exchanges do not comply with essential Know Your Customer (KYC) and Anti Money Laundering (AML) procedures, HBUS requires a mandatory KYC because customers are allowed to trade.
Ken Wang, HBUS General Manager of Operations, stated in this regard:
“We are excited to launch a fully compliant virtual currency platform for the American audience.”
Huobi Looks to Disrupt Sector
Initially a China-based cryptocurrency exchange, Huobi was forced to shift to Hong Kong after the eastern superpower banned cryptocurrency businesses and trading in the country. As per the official site, the exchange has a presence in Singapore, Japan, and South Korea.
Huobi vies with leading rival cryptocurrency exchanges Binance and OKEx and is diversifying its product range and services in recent times. For example, the company launched its own cryptocurrency Exchange Traded Funds (ETFs) on June 1 and launched a cryptocurrency fund on June 5.
The ETF is aimed at institutional investors and tracks the exchange’s Huobi 10 index against controversial stable coin Tether.