The ongoing crypto winter has brought the lives of several companies operating in the industry, including the Huobi exchange, to a halt. Seychelles-based crypto exchange Huobi is suffering the impact of rough market dynamics. Under these circumstances, Huobi’s South Korean unit is studying an independent work module. Huobi Korea could sever ties with its global parent company, which, if passed, could also result in the company changing its name.
the Huobi crypto exchange expanded to the South Korean market in 2017. Headquartered in Seoul, the Huobi exchange started offering crypto exchange services in South Korea in 2018.
Leon Li, the co-founder of Huobi Global allegedly owns 72 percent stake in Huobi Korea. Those shares could be purchased by Cho Kook-bong, chairman of Huobi Korea, when the decision is formally finalized.
Huobi Global joined the list of several exchanges such as binance and KuCoin to have his proof of his reserves checked in December after the dramatic crash of the FTX crypto exchange.
At the time, it was stated that of the $3 billion stored in Huobi Global’s reserves, 43.3 percent of the holdings were stored as Huobi’s native token HT.
However, last week the HT token fell 11 percent and is currently priced at $4.85 (roughly Rs. 398). CoinMarketCap. Over the past month, the HT token has plummeted 30 percent.
Against the backdrop of the turbulent momentum of the crypto market, Huobi Global also has announced that it laid off 20 percent of its workforce.
These could be the reasons why Huobi Korea might try to explore an independent operation in the burgeoning crypto market.
The crypto market in South Korea reached the valuation of 46 billion US dollars (approximately 3.66.31 billion rupees) by the end of 2021, with the number of users reaching nearly 5.58 million or about 10 percent of the country’s population, as in a to learn by the South Korean Financial Services Commission.
South Korea is taking a more crypto-friendly approach to establishing itself as an industrial hub.
The Asian nation, for example, has decided to impose a 20 percent tax on crypto revenue by 2025.
Not just the crypto industry, but the Asian tech hub is also exploring ventures in the metaverse industry.
The government of South Korea plans to do this invest over US$177 million (approx. Rs.1,372 billion) in support of Metaverse projects which will also spark job opportunities in the sector.
Huobi Korea, which had emerged as the country’s second-largest stock exchange as of January 2021, may be looking for ways to protect its business from Huobi Global’s ongoing troubles.
In 2021, Huobi Korea received certification from the Korea Internet and Security Agency after the exchange proved it was compliant with the country’s financial laws.
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