• Huobi Global, popular cryptocurrency exchange, announced plans to apply for a trading license in Hong Kong.
• Justin Sun, advisor of the exchange, revealed that they will also launch a new exchange called Huobi Hong Kong.
• The news prompted an enthusiastic response from Huobi Token [HT] as its price surged 20%.
Huobi Global Applies for Trading License in Hong Kong
Popular cryptocurrency exchange Huobi Global will apply for a trading license in Hong Kong, the exchange’s advisor, Justin Sun, announced on Twitter on 20 February. Sun added that Huobi will also launch a new exchange named Huobi Hong Kong which will adhere to local regulatory laws and target institutional investors from Hong Kong and other Asian markets.
Enthusiastic Response From Huobi Token [HT]
The news sparked an enthusiastic response from Huobi Token [HT] as its price jumped nearly 20% to hit $6.19 at the time of writing this article, per data from CoinMarketCap. Network activity exploded with the daily active addresses for the token spiking 75% from 17 February while the velocity moved in an ascending trajectory as well.
Pro-Crypto Policy Part of HK Ambitions
The pro-crypto policy is part of Hong Kong’s ambitious attempt to establish itself as a global crypto trading hub. The Securities and Futures Commission (SFC) of Hong Kong released new guidelines for crypto trading platforms looking to apply for a license under the new regime which allows retail investors to trade popular crypto currencies like Bitcoin [BTC] and Ethereum [ETH].
Huobi Hoping To Shake Off Pessimism
The news comes following months of pessimism surrounding the financial health of big cryptocurrency exchanges such as Huobi Global who were at the receiving end of mass layoff speculation last month. It is hoped that this latest move would help them shrug off any doubts about their future prospects.
Indicators Point Towards Bullish Momentum
Indicators like Relative Strength Index (RSI) and Awesome Oscillator (AO) gave overwhelming bullish signals pointing towards further gains in HT’s price despite doubts over whether it could maintain such momentum in the short term.