Huobi recently announced that Huobi was approved by the Hong Kong Securities and Futures Commission to launch a cryptocurrency asset management portfolio.

Reportedly, a Huobi subsidiary will be now able to operate a crypto investment fund per the approval of the regulators in Hong Kong.

Huobi are continuing to expand their business subsequent to the recent regulatory clearance in Hong Kong.

An official announcement from Huobi Technology Holdings Ltd. states that the company’s asset management subsidiary have obtained approval from the Hong Kong Securities and Futures Commission to launch a cryptocurrency asset management portfolio.

Also, back in July 2020, Huobi obtained, “Type 4” and “Type 9” licenses from the SFC back in July in 2020.

Reportedly in Hong Kong, a Type 4 license makes it possible for a company to be able to act as a securities investment advisor and a Type 9 license provides for asset management.

The firm by the name, Huobi Asset Management, are now looking to launch three cryptocurrency asset funds subsequent to the approval by the SFC.  Reportedly, the launch will be conditional of the funds complying with additional provisions issued by the SFC.

It is expected in the industry circles that Huobi’s entry into the crypto asset management sector will incentivize institutional investors in Asia to give importance to crypto investments.

Reportedly, Huobi’s planned crypto asset management fund will include both Bitcoin and the Ether. 

Ciara Sun, Head of Global Business and Markets Vice President at Huobi Global recently pointed to the fact that HuobiGlobal has got the answer for how to survive and thrive in the age of global uncertainty.

Ciara also pointed to how it is not hard to see that DeFi is able to quickly shape the future of finance.  She also stated that another promising year is laid ahead for Dapps due to the trends bolstered by the power of stablecoins and the increase in adoption of NFTs’ new scaling and liquidity options.

For clarity, DeFi is an abbreviation of the phrase decentralized finance. It allows anyone in the world to conduct financial activities without geographic or time limits by building decentralized agreements for open financial systems.

Depending upon the financial activities DeFi can be DeFi Loans, Predictor, DiFi Exchange (DEX).

DeFi Loans are the asset lending and borrowing services extended to users with decentralized lending agreements. Those users who have idle assets will be able to obtain income by lending assets. Also, users with asset borrowing requirements will be able to borrow assets and execute other financial activities without verification.

Predictor provides the benchmark price for decentralized lending. Thus, users of the decentralized loans will be able to lend and borrow based on the price of the predictor to avoid losses, which results from the price which deviates from the markets.

DeFi Exchanges (DEX) do not need registration to trade and they are anonymous than centralized exchanges; however, the liquidity is weaker when compared with centralized exchanges.