Huobi operates from Singapore with offices spanning Hong Kong, the United States, Korea, and Japan. The company is moving its headquarters to Hainan, China, where it was founded in 2013. As China move
Huobi operates from Singapore with offices spanning Hong Kong, the United States, Korea, and Japan. The company is moving its headquarters to Hainan, China, where it was founded in 2013. As China moves to shut down domestic cryptocurrency exchanges, Huobi has repositioned itself toward blockchain research and development while maintaining its international trading operations.
At Consensus 2018, a Huobi executive outlined the company's strategy to build out an ecosystem rather than chase short-term gains. "We are one of the first adopters and one of the pioneers in the blockchain industry," the representative said. "Most of our competitors are speculators and tried to gain some money and cash out. But we really wanted to build this ecosystem."
That vision includes a million-dollar fund and incubators across China. One facility spans 40,000 square meters, providing space where incoming projects can establish operations with backing and resources from Huobi. The company has also formed partnerships with Aelf's Innovation Alliance, Michael Arrington (founder of TechCrunch and managing director of Arrington XRP Capital), and FBG, a cryptocurrency venture capital group.
Huobi describes its incubator strategy as technology-agnostic. "We don't have a very specific appetite on what kind of projects that we want to put in the incubator," the executive explained. "It is more about the adoption of technology. So, as long as we find a good fit with their own ecosystem, their own community, then we are more than willing to help them out."
The company has pursued geographic expansion through local partnerships. Huobi maintains offices in Singapore, Australia, Tokyo, and Seoul. This approach shaped its involvement with SBI, a Japanese company positioned as a Huobi exchange partner. SBI has since decided to build its exchange platform in-house. "I really like the company holding 100% control of their own IP," the Huobi representative said, describing the shift as consistent with local regulatory conditions in Japan.
Japan is building a regulatory framework for cryptocurrency that Huobi sees as favorable. "Japan is creating a clear framework for regulating cryptocurrencies, which shows the country's commitment to ensuring the safety of its citizens who are participating in the blockchain and cryptocurrency ecosystem," the executive noted. "This, alongside other regulations, will better protect customers and bring a new wave in adoption."
Huobi has avoided the aggressive regulatory posturing of some competitors. "We're actually moving at a steady pace with the process of conversations with regulators in each market," the representative said. "We're not like some of our other competitors who are just throwing around words. We're moving at a pace according to the progress of each jurisdiction we have conversations with."
For 2018, Huobi plans major initiatives around education and ecosystem development. The company is establishing Huobi Hainan as its new headquarters, alongside Huobi Capital and Huobi Labs. The company has also created a research institute and internal media operation as part of this expanded infrastructure.
Hainan offers strategic value for Huobi's expansion. China plans to establish the island province as a free trade zone, creating what the executive described as a potential hub for blockchain development. "Us moving there is actually really strategic, we can work on this incubation and we can work on building that ecosystem around that area of China," the representative said.
China's stance on blockchain and cryptocurrency remains mixed. The government has embraced blockchain technology while suppressing domestic crypto exchanges. When asked whether China might reopen exchanges to domestic users, the Huobi representative demurred: "Not until we have a yes from the government." Pressed on timing, the executive offered no prediction. "We are not in a position to answer that right now."
Yet the executive detected a shift in government receptiveness toward the sector. "They have a very similar attitude as other regulators, they're learning," the representative said. "It definitely will help that they are learning from the best from our industry and from different practitioners as well."
Authorities across the globe remain in learning phases with blockchain and cryptocurrency policy. At conferences like Ethereal, officials from the World Economic Forum and EU Parliament have engaged with industry figures. Many policymakers confuse blockchain technology with its cryptocurrency applications, causing hesitation or opposition. "Even white papers are technical. They're written by developers as if everyone is a developer," the Huobi executive observed. "From the Facebook congressional hearings, we know that government is not savvy enough or they just don't know enough or have enough information to see all the different aspects of the community."
Education must flow in both directions. "If they are more open to talking to people and understanding it, then obviously they're going to become more educated to the point where they understand what the true implications are," the representative said. "So, it's about educating the entire government and the entire country of citizens, and that's massive."
That education effort extends beyond China. "Everywhere, in Europe, in Greece, there are all those countries where everyone's trying to figure out more or less the same thing," the executive said. Hainan's transformation into a free trade zone positions it as a testing ground for such efforts, a location where Huobi can experiment with ecosystem building while policymakers learn about blockchain's possibilities.
Oliver Carding and Cameron Carpenter conducted the interview at Consensus 2018.
