On March 28th, Hong Kong Regulators Wary of Approving Huobi Global’s License Application Amidst Fraud Allegations

On March 28th, according to a report by Nikkei Asia, although Sun Yuchen believes that the fraud allegations made against him by US regulators will not affect the license application of Huobi Global in Hong Kong, according to relevant lawyers, the Hong Kong Securities and Futures Commission (SFC) is more difficult to approve Huobi’s VASP application under current circumstances. Sun Yuchen previously announced that he would relocate Huobi’s headquarters to Hong Kong, but the US Securities and Exchange Commission announced allegations of fraud and unregistered securities against him on March 22, which would hinder the progress of his application, as regulators had to repeatedly review every detail before reaching a conclusion, and relevant lawyers believed that Huobi’s application process might be significantly delayed.

Foreign media: Due to Sun Yuchen’s alleged fraud, it may be more difficult for the SFC to approve the Huobi license application

Outline

1. Introduction
2. Sun Yuchen’s belief that fraud allegations will not affect Huobi’s license application in Hong Kong
3. Lawyer’s concerns about the approval of Huobi’s VASP application in the current circumstances
4. Sun Yuchen’s announcement of relocating Huobi’s headquarters to Hong Kong
5. The impact of the fraud allegations on Huobi’s application process
6. The possible delay in Huobi’s license approval by Hong Kong Securities and Futures Commission (SFC)
7. Implications for Huobi’s business operations
8. Conclusion
9. FAQs

Article

The crypto market has been buzzing with news of fraud allegations against Sun Yuchen, the founder of Tron and CEO of BitTorrent. The US Securities and Exchange Commission (SEC) recently accused him of unregistered securities issuance and fraud, which could impact his other businesses such as Huobi Global.
Sun Yuchen had announced earlier that he would be relocating Huobi Global’s headquarters to Hong Kong, but the recent fraud allegations have raised concerns about the approval of Huobi’s Virtual Asset Service Provider (VASP) application by the Hong Kong Securities and Futures Commission (SFC). Sun Yuchen, however, remains optimistic and believes the allegations would not affect the license application.
But lawyers specializing in financial and regulatory law disagree. They believe that the SFC would be more cautious about approving Huobi’s VASP application under the current circumstances. Given the fraud allegations looming over Sun Yuchen’s head, the regulators would undoubtedly take extra care in reviewing Huobi’s application.
The process might take longer than usual as the regulators would have to thoroughly examine all details and scrutinize every aspect of Huobi’s application before making a decision. Therefore, it is unlikely that the approval process would be as smooth as Sun Yuchen expects.
The Hong Kong SFC’s current guidelines mandate a rigorous vetting process of VASP applications, where the applicant must demonstrate that it is “a fit and proper person” to hold a license. In this case, the fraud allegations may trigger questions about Sun Yuchen’s suitability to hold a license in Hong Kong.
For Huobi Global, the potential delay in the approval process could impact their business operations significantly. If the license is not approved in time, it may force Huobi to carry on its operations without regulatory approval, which would put them at risk. Additionally, it could impact their reputation and credibility in the long run.
In conclusion, the fraud allegations against Sun Yuchen have raised concerns about Huobi Global’s license application approval in Hong Kong. While Sun Yuchen is optimistic, lawyers specializing in financial and regulatory law believe the current circumstances make it increasingly difficult for Hong Kong’s SFC to approve Huobi’s VASP application in time. The delay in the approval process could have significant implications for Huobi’s business operations.

FAQs

1. What is the impact of the fraud allegations on Huobi Global’s license application?
Ans: The fraud allegations against Sun Yuchen, the CEO of BitTorrent and founder of Tron, have raised concerns about Huobi Global’s license application approval in Hong Kong. While Sun Yuchen is optimistic, financial and regulatory law experts believe that the process could take longer than usual, impacting Huobi’s business operations.
2. What is the possible delay in Huobi’s license approval by Hong Kong Securities and Futures Commission (SFC)?
Ans: As per the current circumstances, Hong Kong Securities and Futures Commission (SFC) may take extra care in reviewing Huobi’s Virtual Asset Service Provider (VASP) application due to the fraud allegations against Sun Yuchen. Therefore, the approval process may be significantly delayed.
3. What are the implications for Huobi’s business operations?
Ans: If the license is not approved in time, it may force Huobi to carry on its operations without regulatory approval, which would put them at risk. Additionally, it could impact their reputation and credibility in the long run.