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Huobi Seeks Trading License in Hong Kong and Launches Offshore RMB Stablecoin

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On February 20, Sun Yuchen, a member of Huobi\’s Huobi Global Advisory Committee, announced that Huobi was applying for a Hong Kong cryptocurrency trading licen…

Huobi Seeks Trading License in Hong Kong and Launches Offshore RMB Stablecoin

On February 20, Sun Yuchen, a member of Huobi’s Huobi Global Advisory Committee, announced that Huobi was applying for a Hong Kong cryptocurrency trading license. On the same day, the official website of Huobi announced the launch of the offshore RMB stable currency TCNH. It is reported that TCNH is a 1:1 stable currency for anchoring offshore RMB deployed on the TRON network, and Hong Kong is one of the main circulation places of offshore RMB.

Huobi launched offshore RMB stable currency TCNH

Analysis based on this information:


Huobi, one of the leading cryptocurrency exchanges, has announced its plan to apply for a cryptocurrency trading license in Hong Kong. This move comes after the Chinese government’s recent crackdown on cryptocurrency trading and the subsequent relocation of some of the largest exchanges, including Huobi, to other countries. Hong Kong, with its relatively more liberal regulations, is seen as a favorable destination for cryptocurrency businesses.

The announcement was made by Sun Yuchen, a member of Huobi’s Huobi Global Advisory Committee, on February 20th. It is unclear how long the application process will take, but a successful license could provide Huobi with greater legitimacy and attract more institutional investment. Moreover, it would allow Huobi to expand its customer base in Hong Kong and tap into the growing demand for cryptocurrencies in East Asia.

On the same day, Huobi also announced the launch of a new stablecoin called TCNH. Stablecoins are cryptocurrencies that are pegged to the value of another asset, such as a fiat currency, to reduce price volatility. TCNH is a 1:1 stablecoin that is anchored to the offshore Chinese yuan or CNH, which is freely traded outside of mainland China. The stablecoin is deployed on the TRON network, a decentralized blockchain platform for building decentralized applications.

According to Huobi, Hong Kong is one of the main circulation places of offshore RMB, and TCNH could provide a useful tool for traders and investors to hedge against currency fluctuations. It could also be used for cross-border payments and remittances, especially to and from China. However, there are concerns about the stability and transparency of stablecoins, as well as their impact on the wider cryptocurrency market.

In conclusion, Huobi’s move to seek a cryptocurrency trading license in Hong Kong and launch an offshore RMB stablecoin is a strategic response to the changing regulatory landscape and market demand. It remains to be seen whether these initiatives will be successful or face regulatory or technical challenges. Nevertheless, they reflect Huobi’s ambition to innovate and stay ahead of its competitors in the rapidly evolving cryptocurrency industry.

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