Huobi recently announced it will be working with the Japanese financial institution, SBI Group, and will be launching two brand new cryptocurrency exchanges this year. Huobi, originating out of Beijing, was once the biggest trading platform in China, before the central bank halted all domestic exchanges from cryptocurrency trading.
Prior to 2017, China was the dominant player in Bitcoin trades, with three of its top exchange companies leading the way. Huobi was one of those three exchanges. However, the People’s Bank of China began halting all domestic exchanges from performing cryptocurrency trades in China, early on in 2017. The bank closed all the Chinese exchanges involved in digital asset trading.
Not to be held back, the trading platform’s parent company, Huobi Group, will soon be partnering with SBI, a financial institution previously known as Softbank Investment Group. Plans are in place to launch two virtual currency exchanges, with the tentative names of, “Huobi Japan,” and, “SBI Virtual Currencies.”
SBI wants to establish premier cryptocurrency-related business in the Asian region, using Huobi’s technology, know-how and human resources, according to information shared by the company. Through the partnership and establishment of the two new exchanges, SBI Group has stated it wants to gain, “30 percent of the equity in Huobi Group’s Japanese entity.” The company also expects to acquire 10 percent of Huobi Group’s Korean entity and Huobi, in exchange, will receive 30% of the equity in the SBI Virtual Currencies business. Apparently, Huobi has an excellent reputation within the digital currency space, which has built the foundation for this general agreement.
Huobi Group currently also operates an international digital money exchange named, “Huobi.pro,” which sees a lot of volume from regions like Korea, Singapore, and Hong Kong. The company also still runs its China News and Research Platform, along with its Huobi Wallet Digital Asset Management service.
Some people speculate that China may have a change of heart at some point, in regards to cryptocurrency. Many people agree that if China ever comes on board with it, that it could be a real game-changer. For now though, companies like Huobi are finding other places to operate.