Popular Chinese crypto exchange Huobi Global is making plans to relocate its headquarters to a location in the Caribbean.
Caribbean a Key Market for Huobi Global
On November 2nd, Justin Sun, an investor and advisory board member for Huobi Global, announced the company’s relocation plans.
He stated that one of the most important objectives is to “go all in the Caribbean” due to its crypto-friendly community. Dominica was selected as the number one option, but Panama and the Bahamas were also considered to be strong contenders.
The move would make it one of the most significant crypto firms to relocate to the region at a time when authorities all over the world are ramping up their oversight of the cryptocurrency industry,
In recent years, the Caribbean has emerged as a prominent center for crypto. Sam Bankman-Fried’s FTX relocated from Hong Kong to the Bahamas last year. In August, Crypto.com secured a license to operate in the Cayman Islands, where the world’s largest crypto exchange, Binance, is currently headquartered.
Sun stated that he met Dominica’s Prime Minister, Roosevelt Skerrit, last year. This move would make it possible for Huobi to collaborate closely with the country to build its crypto infrastructure.
Last month, Skerrit legalized the use of digital assets as a payment method in the country. According to Sun, he is a “very tech-savvy person” who is aware of “how crypto and the technology works.”
Dominica’s government worked in collaboration with Sun’s TRON platform to launch the Dominica Coin (DMC). Justin Sun, Grenada’s Permanent Representative to the World Trade Organization, expressed hope that this would be the “first of many technological partnerships with sovereign governments in the future.”
The early steps taken by Caribbean states to roll out crypto regulations and encourage the industry have been productive and have worked to the region’s advantage.
Is China Making a Comeback in Crypto Space?
In an interview with the Financial Times in London, Sun stated that he was very bullish on the prospect of China relaxing its stance on cryptocurrency. This has been hinted at in recent times with Hong Kong’s policy shift and embracing of crypto companies from all over the world.
Chainalysis, a US blockchain research firm, ranked mainland China as the world’s fourth-largest crypto market by transaction volume last month, despite the ban on crypto last year.
Sun also stated that the “Chinese government leadership is currently undergoing changes” and that policies may be eased “after Q1 next year.”
Huobi Global intends to expand its presence in Hong Kong as a result of its ties to mainland money. According to Sun, it’s common knowledge that Hong Kong enjoys a significant advantage over the rest of mainland China.
The price of Huobi’s native token, HT, fell by 2.5% over the course of the day to $8.4. However, with the news of Sun’s takeover, it has nearly doubled in the last month. HT has experienced a decline of 80% since reaching an all-time high in May 2021.
At the time of writing, the price of a TRX token is $0.063, down 73% from its peak in January 2018.