A digital currency trading company Huobi located in Hong Kong has been issued a permit to provide cryptocurrency transactions in Nevada by a branch, paving the way for a comeback to servicing the U.S. sector.
The Huobi Trust Company subsidiary was granted a permit by the Department of Business and Industry’s Nevada Financial Institutions Division, enabling the firm to conduct cryptocurrency products in the U.S. under the state’s legal system.
This may see the company setting up custodian operations in 2021, representing institutional clients with cryptocurrency assets, per a recent document with the Hong Kong Stock Exchange.
“The board of directors of the Company is pleased to announce that Huobi Trust Company (the ‘Huobi Trust’), a company incorporated in the State of Nevada, the United States and an indirectly wholly-owned subsidiary of the Company, was recently issued with a Trust Company License by the Financial Institutions Division of the Department of Business and Industry in Nevada, the United States, to engage in the trust company business within the meaning of Chapter 669 of the Nevada Revised Statutes and the rules and regulations thereunder.”
The change occurs after the previous decision of the company to exit from the U.S. sector in December 2019. Huobi highlighted questions at the time about the evolving regulatory situation in the nation. Currently, with a legal structure in effect, the move to obtain a new permit could witness the company coming back to U.S. activities in the next months.
Given Nevada’s status, some other prominent virtual currency traders appear to leave the U.S., raising worries at the state and federal level over legislative instability. Described as a “cautious comeback,” Huobi’s moves would be embraced by those in the cryptocurrency ecosystem willing to proceed to servicing U.S. consumers when the legislative environment permits.