The Seychelles regulator said that the Huobi Global cryptocurrency exchange is not registered in its jurisdiction and does not have permission to operate in this offshore.
According to the Seychelles Financial Conduct Authority (FSA), Huobi Global Limited has been identified as an international business company under local law. At the same time, the FSA pointed to the “connection of this company” with Huobi Global, an exchange for trading digital assets. The regulator published on its website
warningthat the exchange does not have a license for this type of activity in the Seychelles. Huobi Global Limited is not regulated or previously controlled by the FSA, according to the agency. The FSA has also urged users to exercise caution regarding the services provided by Huobi Exchange and other similar platforms.
Huobi isn’t the only exchange to find itself in this situation. Last year, a similar case happened with the Binance exchange. Earlier, the Malta Financial Services Authority (MFSA) announced that the Binance trading platform is not regulated by local authorities and is not licensed in Malta. However, Binance CEO Changpeng Zhao said that in today’s world, companies don’t have to have offices and headquarters.
Last fall, the BitMEX cryptocurrency exchange was also involved in a lawsuit over the illegal activities of the site in the United States. The US Commodity Futures Trading Commission (CFTC) accused BitMEX of money laundering, as well as violating KYC and AML rules. According to court documents, BitMEX founder Arthur Hayes may surrender to US authorities as early as next month.
Seychelles is home to many crypto-asset exchanges. These include OKEx. This exchange is based in Malta but is operated by Aux Cayes, a Seychelles-based company. According to last year’s research by analyst firm CipherTrace, 70% of cryptocurrency exchanges registered in the Seychelles are not KYC compliant.
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