In an interview with CNBC, Huobi co-founder Du Jun said Huobi is considering a return to the U.S. market after its previous attempt failed between 2018 and 2019.
Huobi is a crypto-currency exchange founded in China and fell victim to the crypto-currency crackdown in China that forced it to shut down Chinese operations late last year, resulting in a loss of about 30 percent of its revenue.
Huobi has since been able to rebound thanks to its willingness to expand its operations around the world. It has set up operations in Asia with a headquarters in Singapore. It is also looking at Europe with its eyes currently on the United States.
Huobi had a presence in the U.S. market in 2018 before leaving the market in 2019 due to regulatory issues. It is now ready to return to the market, although it does not need to offer crypto-currency exchange services. Instead, he plans to offer asset management services.
During the interview, Du Jun said:
“In 2018, we tried to enter the U.S. market but quickly pulled out because we didn’t have a strong commitment to the market at that time and we didn’t have a good management team in the U.S. when we did it last time. Crypto-currency is a big industry and the exchange is just one part of that industry that has been most exposed. From mining machines to mining coins, from exchange to wallet, including financial derivatives. There are many opportunities. As a manager, I expect to be a bigger business than the exchange, which also echoes the traditional financial market. In choosing our business model to enter the U.S., I don’t think exchange is a necessary component to enter the U.S.”
The co-founder also said that the company would use all its strength to venture into the global market, as the company has no other chance but to go global.
Jun also added:
“In terms of the amount of resources, all the staff will be deployed for the international market. We have no choice but to use all our strength to move forward with our global strategy. In the past, we explored a new market and could always withdraw if it didn’t work out. Now, Huobi has no choice but to go global.
The U.S. is a promising but competitive market with companies like Coinbase and Binance competing to win a stake in the large U.S. crypto market in a constantly changing regulatory environment. Huobi believes that a different strategy from its previous exchange strategy would be successful.