The provisional approval allows Huobi to offer virtual asset exchange products and services to “pre-qualified investors and professional financial service providers.”
Spot and OTC Services Are Limited to Pre-Qualified Investors
The Asian cryptocurrency exchange platform, Huobi, has become the latest digital asset services company to receive provisional approval from the Dubai Virtual Assets Regulatory Authority (VARA). According to a statement released by the exchange, this approval gives Huobi’s United Arab Emirates (UAE)-based entity the authority to offer “a full suite of virtual asset exchange products and services.”
Before giving Huobi its approval, VARA had granted another provisional license to Seychelles-based crypto trading platform OKX. Also, before this, the regulator had issued approvals or licenses to Binance, FTX, and Coinmena.
Meanwhile, in a statement, the crypto exchange said it will be targeting so-called professional investors. Concerning spot and over-the-counter (OTC) trading services, Huobi said these will be extended “to a limited subset of pre-qualified investors and professional financial service providers.”
Establishment of Regional Headquarters
Huobi also suggested that getting the provisional license paves the way for the establishment of the exchange’s regional headquarters in Dubai. In remarks following the granting of the provisional license, Huobi Group CFO Lily Zhang said:
The Dubai Government is committed to turning the Emirate into a global hub for the future digital economy and being at the forefront of financial innovation. Huobi is optimistic about the city’s potential and the future opportunities it offers.
Zhang added that her organization is looking to work to “foster growth of the virtual asset industry there.”
Besides the license from VARA, Huobi said in the statement that it has also obtained licenses in other regions such as South Korea, Japan, and Gibraltar.