The cryptocurrency exchange Huobi Korea, which is situated in Korea, intends to separate from Huobi Global and launch its own company, according to a report in Korean media News1.
Huobi Korea, a domestic cryptocurrency exchange, plans to set up its connections with Huobi Global, its parent company. By changing its name to Huobi and acquiring shares, it is pursuing a strategy to strengthen its local footprint.
On the 9th, industry sources claimed that Huobi Korea started making plans to purchase Huobi Global's shares and change the company's name. The company plans to put out a request for new missions from both internal and external workers, and after receiving input, to finalize the mission.
More over half of the shares in Huobi Korea were owned by Leon Lin, the creator of Huobi Global. The following largest stockholders are Korea Land Trust and Chairman Jo Guk-Bong. Jo, who also owns a cryptocurrency mining business, is slated to acquire Lin's majority stake.
Huobi Global was perceived as crossing a boundary with the name change and stock purchase. A virtual asset exchange that competed with Binance and FTX was Huobi Global. 2013 saw the debut of China's biggest virtual asset market by former engineer Li Lin.
Due to the rise in Proof of Reserve (POR) demand, Huobi Global has had difficulties. Huobi Korea chose to sever connections with Huobi Global for the same reason. Proof of Reserves (POR) agreements were developed among virtual asset exchanges to prevent customers from withdrawing cash as a result of FTX's previous bankruptcy filing due to a lack of liquidity.
The choice was made following a challenging year for Singapore-based Huobi Global, which saw a change in its corporate structure. It revealed plans to cut 20% of its employees earlier this month, and a spokeswoman said that moving ahead, a very lean team would be maintained.