Huobi Group, who via its affiliated entity Huobi Technology (Gibraltar) Co. Ltd received their DLT licence from the Gibraltar Financial Services Commission (GFSC) with the assistance of ISOLAS LLP back in 2018, in relation to the secondary market trading venue, recently announced that they will be relocating the spot trading services of Huobi Global, one of the largest exchanges in the world, to Gibraltar.
This is the first significant migration of the group to a fully regulated infrastructure but part of a strong global trend as jurisdictions aim to comply with the FATF Recommendations in the regulation of virtual asset service providers (VASPs).Gibraltar stands out in having developed standards for trading platforms with a concrete consumer protection and security focus which the Huobi Group also believes will appeal to users and institutions aiming for the rights standards applied to these trading platforms.
The news was also released at the same time as the announcement of the Bullish exchange obtaining its license in Gibraltar who were also advised by ISOLAS.
Both Huobi Global and Bullish assessed several jurisdictions before choosing Gibraltar as the base for their operations, on the basis of the now well-established regulatory framework providing the best fit their business considerations. Ultimately, the GFSC’s experience and reputation in approving and bringing the activity of crypto exchanges within the scope of prudential supervision and not simply subject to registration requirements developing in some parts of the world made Gibraltar the most attractive choice, and continues to be so for groups aiming for the highest standards.
This is a great leap for the Gibraltar crypto sphere, which will undoubtedly have a knock-on effect in attracting further key players to the Rock, a jurisdiction that has fast become a sought-after destination for its progressive, friendly, ‘right touch, not light touch’ regulatory environment, and bringing the activity within a principles-based framework allowing the authorities to develop standards and requirements without being locked into legacy rules bases systems.
ISOLAS’ involvement with both companies, in addition to their assistance with the majority of DLT licences since their introduction in Gibraltar on 1 January 2018, has further cemented the firm’s position as a keen market leader in the crypto space.
Joey Garcia, Partner at ISOLAS LLP, commented: “We warmly welcome Huobi to Gibraltar’s dynamic cryptocurrency ecosystem, as we continue to evolve as a jurisdiction. We are also very pleased to have worked with Bullish. This represents another significant addition to the Gibraltar regulated VASP ecosystem.”
Peter Isola, Senior Partner at ISOLAS LLP, said: “ISOLAS LLP continue to make great strides in the advancing sphere of crypto regulation, helped by Gibraltar’s tolerant and progressive understanding of the industry. It is an exciting time for the firm as our team of DLT experts continually contributes to the regulatory dialogue in the sector, as well as delivering a first-class service to clients. As the appeal of doing business on the Rock continues to boom, we look forward to offering our expert advice to new clients emerging in this burgeoning field.”
