ISOLAS Advise on DLT Licence

10/12/2018 Jonathan Garcia

Huobi Awarded DLT Licence By Gibraltar Financial Services Commission

Cryptocurrency giant Huobi Global is delighted to announce that it has been granted a Full Distributed Ledger Technology (DLT) license in Gibraltar for exchange related activity.

The new license gives Huobi the authority to store and transmit digital assets on behalf of clients worldwide. In addition to bringing crypto-to-crypto trading within a fully regulated environment, the license also opens up exciting possibilities for simplified and efficient fiat-to-crypto and crypto-to-fiat functionality that provides an alternative to OTC services. Huobi’s license is among the first batch of licenses awarded by Gibraltar via its newly instituted regulatory environment for overseeing digital assets. Gibraltar is the first jurisdiction to introduce a purpose-built DLT regulatory framework.

Huobi Global is part of Huobi Group, the world’s leading blockchain company. In 2013, the founding team foresaw the great potential of blockchain technology to revolutionize the future of the global financial system. The Huobi Global exchange was established with a mission to make both the financial industry more efficient, and more accessible to everyone. The Huobi team is dedicated to providing safe, professional, trustworthy, and world-class services to its global clients. Huobi Group has over 22 global offices in Singapore, China, North America, Australia, Japan, South Korea, and is prevalent in over 130 countries across the globe.

Li Huo, Managing Director of Huobi Capital, commented that “Huobi has always been keen to operate at the highest standards in the world which is why we feel that regulation for our exchange business is so important, and why we have pursued our licensing in Gibraltar. It has been great working with Joey and the ISOLAS team, and we look forward to developing our relationship.”

Joey Garcia, lead partner in the Fintech team at ISOLAS LLP which has represented Huobi through their licensing process, commented: “It has been really great to see licenses being issued by the Regulator in Gibraltar when many jurisdictions are only now considering if, and how, to appropriately regulate the space. This has been an extremely thorough regulatory process and building out a specific purpose-designed regulatory regime in Gibraltar for this emerging industry has also been years of work so it is very satisfying to see this come to fruition, especially when groups like Huobi are seeing the opportunity, having assessed all of the options available to them. We are excited about continuing to work with Huobi and to develop Huobi’s relationship with Gibraltar.”

The awarding of the license has also been welcomed by members of the government of Gibraltar. Gibraltar’s Minister for Commerce, The Hon Albert Isola MP, said, “This announcement is yet another example of the effective road to market Gibraltar by providing for companies seeking continuous innovation under the umbrella of sensible and secure regulation. The robust DLT legislation we have introduced gives quality companies like Huobi a supportive framework on which they can further develop and cultivate sustainable legacies.”

Isola also praised Huobi and ISOLAS’ diligence in working with Gibraltar’s regulatory framework. “Our congratulations to the team at Huobi who have demonstrated a detailed understanding of the nine regulatory principles that underpin our DLT legislation. Their commitment to building innovation and sustainability in the industry is evidenced by the granting of their licence. A global industry leader, Huobi is a welcome addition to the thriving blockchain ecosystem we have established here in Gibraltar and further consolidates the jurisdiction’s position as a world-class destination for blockchain companies,” Isola concluded.

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