The financial watchdog in Seychelles, the Financial Services Authority (FSA), has publicly declared that the leading global digital assets financial service provider, Huobi Global, is not authorized to provide such services.
According to a statement published by the regulatory body on March 8, the FSA noted that it had learned from the information available on Huobi’s public domain that it provides cryptocurrency services to its clients, which it is not licensed to do.
The regulatory agency said,
“The FSA hereby informs the public that the aforementioned IBC does not hold any license issued by the FSA to undertake such type of activity. Therefore, the entity is not being regulated by the FSA, nor has it been in the past.”
The FSA referred to section 4(1)(m) of the Financial Services Authority Act 2013, which clearly stated that it has the authority “to issue such advisories to investors, licenses, and the general public as it considers appropriate.”
To this end, therefore, the FCA warns investors to be cautious while dealing with the crypto exchange.
Huobi is a global cryptocurrency exchange that provides various digital assets financial services, including trade, wallet, and storage. The Chinese-founded company repeatedly claims on its website and Legal Statement to be registered in Seychelles and governed by relevant laws and regulations in the jurisdiction.
In light of the recent announcement by the Seychelles FSA, Huobi’s claim to be registered in Seychelles and operating according to local laws is debatable.
Coinfomania reached out to Huobi Global regarding the regulatory statement and a media representative said:
Huobi Global Limited is a Seychelles registered company under Huobi Group. It provides services to global customers in accordance with applicable laws. 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.
A Case Similar To The Binance-Malta Saga?
Meanwhile, the alert given by Seychelles’ financial regulator, the FSA, is very similar to what had transpired between leading cryptocurrency exchange, Binance, and Malta’s regulatory body, the Malta Financial Services Agency (MFSA) early last year.
The regulatory watchdog had alleged that Binance was not authorized by it to provide crypto-related services.
The claim, however, was later refuted by the company’s CEO, who noted that the country had not granted licenses, not only to Binance but to every other cryptocurrency exchange operating in Malta at that time.
UPDATE: We updated this article to include a response from a Huobi media representative on the development. An earlier version noted that Coinfomania had reached out to the company for comments.
Affiliate: Get a Ledger Nano X for $119 So That Hackers Won't Steal Your Crypto!