The Huobi cryptocurrency exchange is planning to grow its operations in Hong Kong. Justin Sun, the founder of Tron and a Huobi Global Advisory board member, is optimistic that crypto activities will return to China after the country eases its strict stance on the industry.
Huobi sets its eyes on China
China was the world’s largest cryptocurrency hub before the crackdown in 2021, leading to a blanket ban on all trading and mining activities. Both trading and mining activities migrated overseas. One of the most affected firms by this ban was Huobi Global, which was the largest exchange in China.
Huobi is now betting on a return of crypto activities to China. China has been opening up, with the government easing the strict COVID restrictions. The equity markets have significantly recovered because of the positive sentiment from the government. The crypto industry is optimistic that the government will lift the ban on crypto activities.
While crypto activities in mainland China have been banned, Hong Kong remains a haven for crypto companies. While speaking with Bloomberg TV, Tron’s founder said that Hong Kong was “one of the experiment zones for crypto development in China.” He noted that this was why Huobi chose to expand its operations to Hong Kong.
He noted that some of the critical markets for the Huobi exchange were the Caribbean, Hong Kong, and Malaysia. Last year, Sun became one of the largest investors in the Huobi exchange after acquiring around 60% stake in the exchange, which earned him a seat as one of the exchange’s advisers.
Last quarter, Hong Kong shifted its monetary policy after saying it planned to become a hub for crypto activities. The exchange has been feeling the heat of regulatory crackdown in jurisdictions such as Singapore, where the fall of Three Arrows Capital and FTX was met with increased regulatory scrutiny.
The changes in the digital asset market in Hong Kong could attract attention from Beijing. This is creating speculation that Mainland China might ease up on crypto restrictions and allow crypto activities to return to the country. It is not the first time Sun is optimistic about the return of crypto activities to China.
Exactly! That's why I will move to Hong Kong. Chinese crypto market on the rise! Experts predict that China will dominate the next crypto bull market, with #TRON and @HuobiGlobal leading the charge in Hong Kong development. https://t.co/CaX2Yp5EZA
— H.E. Justin Sun₮ (@justinsuntron) January 29, 2023
“Experts predict that China will dominate the next crypto bull market, with TRON and Huobi Global leading the charge in Hong Kong development,” Sun said.
Sun’s big plans for Tron
Sun is no longer involved in the active development of the Tron blockchain, but he has been using his popularity in the crypto industry to champion the network’s growth. While speaking in the Bloomberg interview, Sun said he was taking measures to ensure that the USDD stablecoin maintains its dollar peg.
The USDD stablecoin has been struggling to maintain its 1:1 parity with the US dollar since the collapse of TerraUSD in May. The regulatory attention also pouring into the stablecoin space, as seen with Paxos, poses a threat to stablecoins that cannot maintain their peg.
Sun also plans to have Tron benefit from the ongoing hype about artificial intelligence (AI). He recently proposed that the Tron blockchain be used to support an AI-payments framework.
- Tron’s Justin Sun Has Announced an AI Crypto Payments Framework for ChatGPT – Is it Just a Marketing Gimmick?
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