Justin Sun 100% confident Huobi will obtain Hong Kong VASP license

Justin Sun says he is “100% confident” that Hong Kong’s Securities and Futures Commission (SFC) will grant Huobi a Virtual Asset Service Provider (VASP) license.

A new licensing regime was enacted on March 1 to address international compliance with Anti-Money Laundering and Counter-Terrorism Funding, as laid out by the Financial Action Task Force (FATF).

Entities providing crypto services in Hong Kong must apply for a VASP license before March 1. The application process involves an assessment of the entity based on its responsible officers, fit and proper tests, and appropriate record keeping, among other requirements.

Shaping the Hong Kong regulatory landscape

Speaking to CNBC, Sun said he is 100% confident that Huobi will be granted a VASP license, given its standing in the Asia market.

“Definitely, 100% confident for Huobi to get a license because Huobi is one of the leading blockchain platforms in Asia.”

The TRON founder went on record to say he thinks regulation “is good for the industry,” more so in Hong Kong due to client expectations of regulatory certainty.

On releasing the VASP license guidelines, Sun said Huobi was the first crypto exchange to apply. He also disclosed holding talks with the SFC to advise on developing an appropriate digital asset framework.

“The Hong Kong government wants to take advice from all different kinds of blockchain participants.”

Does Sun own Huobi?

Huobi was sold to About Capital Management in October 2022, sparking rumors that Sun and disgraced former FTX CEO Sam Bankman-Fried were involved with the deal.

Both denied involvement at the time. However, Sun stated that he had taken on an advisory role at the exchange.

Fast forward to January, a press release about the company’s recent layoffs reported that the exchange is under Sun’s “leadership” in its “path to rebirth.”