Huobi's HBUS Ceases Operations: Impact on Crypto Users

The Closure of HBUS: Details You Should Know

On December 9th, HBUS, the operator of the U.S.-based platform Huobi.com, announced via a tweet that it would cease its operations. In their statement, they expressed regret but hinted at a strategic comeback in the future, saying,

“We regret to inform you that HBUS will need to cease operations so that it can return in a more integrated and impactful fashion as part of its ongoing strategic layout.”

The Context of the Decision

This closure follows closely on the heels of Huobi Global’s decision to freeze all U.S. customer accounts by mid-November, citing the challenging regulatory environment for cryptocurrencies in the U.S. Although Huobi Global initially sought to keep a foothold in the American market, they have since directed users to their “exclusive U.S. strategic partner,” HBUS. This is reminiscent of other exchanges, such as Binance.US, which also operate separately from their parent companies while catering specifically to American users.

What Was Huobi’s Strategy?

Huobi has not exactly been sitting idly by in the market. Instead, they’ve ramped up their global expansion efforts with new initiatives. They launched an exchange in Argentina in September, allowing for a fiat-to-cryptocurrency gateway. Their strategy includes utilizing Huobi Cloud to assist in building over-the-counter (OTC) services and digital asset exchanges. So, it seems Huobi is not about to throw in the towel just yet; they’re just shifting gears.

Licensing and Growth in Thailand

Meanwhile, Huobi’s subsidiary in Thailand scored a major victory by acquiring the country’s fifth official license for a fully regulated digital asset exchange, blown up this past July. With plans to launch in Q3 of 2019, Huobi Thailand will offer both crypto-crypto trading and fiat on-ramps, making it a strong contender in the Southeast Asian market.

Future Implications for Users

So, what does all of this mean for users? If you’re in the U.S. and were using HBUS, you might want to start exploring alternative platforms, especially as everybody holds their breath to see what Huobi’s grand re-strategizing will look like. Who knows, it might just result in a better experience, though at the moment it feels like your favorite diner announcing it’s closing for renovations. Here’s hoping they serve up something even tastier when they return!