Hong Kong: Cryptocurrency Exchange Huobi Looks to Go Public with Reverse IPO


ComputerUniverse Введи промокод FW7FRUX при покупке и получи скидку 5 евро

According to a report by Crowdfund Insider published on September 12, 2019, major cryptocurrency exchange platform Huobi is set to pursue reverse initial public offering (IPO) in Hong Kong.

Huobi Looking for a Backdoor Entry

Crypto business ventures have typically had it tough when it comes to going public on a regulated stock exchange. The year 2017 witnessed full public subscription of a myriad of initial coin offerings (ICO) which resulted in the loss of funds of the investors to the tune of millions of dollars.

Given the unclear regulatory structure surrounding digital currencies, financial watchdogs around the world have understandably displayed a skeptical stance towards crypto-based businesses.

However, it seems that Huobi might be able to successfully disrupt this long-recurring crypto curse as according to a document shared by the Hong Kong Stock Exchange (HKEX), Hong Kong-based electronics company Pantronics Holdings Limited is set to go public.

For the uninitiated, in August 2018, Huobi had acquired Pantronics after the latter transferred 221 million equity shares to Huobi Group. As a result, Huobi acquired about 73 percent of the total stake in the company for a total of $77 million.

Per the latest report, Pantronics will change its name to Huobi Technology Holdings Limited.

Should the HKEX green-light Pantronics’ IPO, the path for Huobi to go public in the financial hub of Asia could become considerably easier.

A Tough Road Ahead

Despite the recent encouraging developments, Huobi’s dream to launch its IPO in Hong Kong still looks quite distant.

In recent times, the Hong Kong financial regulator – the Securities and Futures Commission (SFC) – has tightened its strings around digital currency businesses of any form. As previously reported by BTCManager on March 31, 2019, the SFC had issued a press release warning investors of the regulatory status and associated risks of security token offerings (STOs).

In related news, on December 21, 2018, the world’s largest cryptocurrency mining equipment manufacturer, Bitmain’s IPO aspirations suffered a major setback after the SFC declared cryptocurrency firms “immature.”

That said, things are not all that grim within the Hong Kong cryptospace. BTCmanager informed its readers on February 26, 2019, how local cryptocurrency exchange platform Coinsuper tweaked its business strategy to cater to institutional investors in the emerging asset class.

Like BTCMANAGER? Send us a tip!
Our Bitcoin Address: 3AbQrAyRsdM5NX5BQh8qWYePEpGjCYLCy4