June 21, 2021

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Huobi and Seychelles regulators can’t agree on where the exchange is registered

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Disclaimer: This article’s headline was updated to reflect new information regarding the FSA’s statement. 

Despite long claiming to be compliant with local laws, Huobi has not registered with the proper authorities, according to regulators in Seychelles.

On Monday, the Seychelles Financial Services Authority, or FSA, posted an official statement saying that Huobi Global Limited is not registered in the country, despite being the International Business Company publicly affiliated with Huobi.com’s crypto services.

The FSA stated that Huobi Global Limited does not hold any license issued by the regulator to undertake in virtual asset trading. “Therefore, the entity is not being regulated by the FSA nor has it been in the past,” they said. The authority went on to urge investors and the general public to be alert in respect to services offered by Huobi Global Limited as well as “any other company providing such services.”

Speaking to Cointelegraph, a Huobi spokesperson denied the FSA’s announcement, saying, “Huobi Global Limited is a Seychelles registered company under Huobi Group. It provides services to global customers in accordance with applicable laws.”

The spokesperson added, “We are currently in good standing with the FSA and communicating closely with them to clarify the situation. It is our understanding that the alert in question will be reverted soon.”

According to the user agreement on the official Huobi Global website, Huobi Global Limited is a company incorporated in the Republic of Seychelles under the laws of the Republic of Seychelles. 

The official Huobi website significantly relies on Seychelles’ laws as part of its terms of service, including multiple mentions of the jurisdiction in its legal statement. “This Website is intended to provide professional, safe and trustworthy digital-assets transaction and asset management services […] without violating relevant laws and regulations of the Republic of Seychelles,” the statement reads.

Title: Huobi and Seychelles regulators can’t agree on where the exchange is registered
Sourced From: cointelegraph.com/news/huobi-isn-t-registered-for-crypto-trading-in-seychelles-local-regulators-say
Published Date: Tue, 09 Mar 2021 15:02:27 +0000