Chinese-origin crypto major Huobi is now connected with a crypto-to-crypto exchange on the US market. HBUS, a partner of Huobi, just opened up its platform to US residents. The exchange will offer trading for Tether, Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Dash, Qtum and Civic. Unlike Coinbase and Bittrex, both of which dabble in the fiat world, HBUS will not be touching fiat for the foreseeable future.
Perhaps to capture more of the world’s cryptocurrency markets and make a name for itself in countries that haven’t yet heard of its platform, Huobi seems to be busy setting up partnerships with the English-speaking world in focus.
In our previous coverage of HBUS, we mentioned that the exchange made it clear that it is not a division of its larger partner.
“HBUS is not an ‘arm,’ ‘subsidiary,’ ‘division,’ or any type of ‘affiliate’ of Huobi. Nor is HBUS to be referenced as ‘Huobi US’ or any variant thereof,” the company clarified.
HBUS CEO Frank Fu said that Huobi would not be very involved in the company’s operations.
“Huobi's involvement will be minimal. HBUS is the exclusive US strategic partner of Huobi. The Company is a separate entity from Huobi Global, Inc.,” he told us.
As a result of setting up in the United States, HBUS will have to comply with American regulations, including registering itself as a “money service business,” which means it will have to conduct KYC/AML checks. On the other hand, the exchange may experience fewer complications than Kraken or Coinbase because of its refusal to touch the fiat market.
This is the same strategy that Binance employed to ensure that it experiences as little trouble with local jurisdictions as possible. However, since its move to Malta, Binance set the gears in motion to offer Euro pairs later this year.
Interestingly enough, HBUS cannot offer its services to residents of several US states, including Georgia, Louisiana, New York, Hawaii, and Washington.
“HBUS is not serving certain states due to compliance and licenses to operate. We are working through the regulatory process to release in additional states in order to appease as many users as possible,” Fu clarified.
It might take a while for the exchange to offer countrywide services, but as with any highly-regulated industry, these hurdles are part and parcel of starting a financial services company.