The launch of a regulated crypto exchange in Malaysia

There are generally three ways through which an individual can get cryptocurrency. It can be bought, mined, and earned through the sales of goods and services. The easiest way is buying from a crypto exchange. Many crypto exchanges are unregulated, which attracts a lot of fraud and theft.

In Malaysia, Huobi under the name ‘Huobi Labuan’ was licensed by the Malaysian authorities as a brokerage that offers derivatives and crypto spots for 274 days trial period. The headquarter of the brokerage’s leading crypto exchange is found in Singapore, and experienced a rough patch in 2020, or at least according to rumors. However, in a turn of events, the brokerage announced that it will be launching a new platform under the name Huobi, which will be independent. 

Huobi Labuan targeted the Malaysian market immediately after they got their license for digital asset trading, before launching their trading services. As noted earlier, crypto derivatives and spots will be offered by the brokerage during the first nine-month trial period for many cryptocurrencies such as Bitcoin, EOS, Ether, and Huobi’s token. This could be due to the growing demand in the country, especially for gambling-related activities on cryptocurrencies. For example, despite the fact that eSports betting in Malaysia is illegal, players still find ways to get through to service providers via cryptocurrencies. And thanks to the relatively lax regulations with crypto exchanges, it is quite easy to do so.

The cloud service of the brokerage known as Huobi Cloud will act as a local partner to Huobi Labuan, with regards to their infrastructure consequently leading the company to operate using its already established trading technology for their brokerage services.

According to several news reports, Labuan is just one of the many groups licensed under Huobi platforms or subsidiaries. The brand is seven years old and has a strong foothold in the United States, through HBUS Thailand, Turkey, Argentina, and many more.

Certain areas are currently facing regulatory issues with regards to exchanges, however, Huobi has not stopped increasing their offerings, getting involved in decentralized internet schemes like Filecoin and the DeFi space. At the time of this article, Huobi Global ranks the second crypto exchange spot through volumes traded on a daily basis, with the derivatives exchange charts inclusive.