Huobi Launches Crypto OTC Services in Hong Kong

Key Insights:

• Huobi Technology launched an over-the-counter (OTC) service for cryptocurrencies.
• Investors can trade cryptocurrencies using crypto block trading services and fiat currencies.
• Hong Kong is coming up with its crypto regulatory body by July.

In addition to having the world’s sixth-largest cryptocurrency exchange, Huobi Technologies is now aiming for another crypto service. In details shared with Cointelegraph, the company announced its new OTC crypto services. 

Huobi’s New Crypto OTC

As over-the-counter services go, Huobi technology will enable investors to trade crypto simply using fiat currencies and crypto block trading services. In the announcement, Huobi also specified that for the moment, the only acceptable fiat currency is the US dollar.

However, the company will be expanding the same to Euro, British Sterling Pound, and the Hong Kong Dollar in the future. 

There is already a strong presence of the company in the crypto market. Transactions on the Huobi exchange amount to more than $1.6 billion. Huobi Token has a market cap of almost $2 billion as well.

This service will now access more mainstream non-crypto audiences than ever. 

The Effects of China

Hong Kong is a Special Administrative Region of the People’s Republic of China. While Hong Kong is a part of China, it is autonomous to China’s rules and regulations. The same autonomy extends to crypto regulation as well. 

China’s ban on crypto mining and trading does not affect the legal status of crypto in Hong Kong.

Although, the country is trying to bring regulation into effect in the country. Last month, Hong Kong’s central bank announced its new crypto regulatory regime plans. 

As per the bank, the regulatory authority will be ready by July. It will focus on stablecoins, investor protection, and institutions’ practices with digital assets.

Hong Kong is indeed very crypto positive as it has not applied any tax on crypto in the country. Furthermore, no long-term capital gains taxes are applicable to the profits gained from cryptocurrency selling.

However, the regular movement of money will turn crypto into a means of income. And then Income Tax would be levied on the citizen.