- The company recently announced plans to list PayPal’s new stablecoin.
- The allegations come at a time the company tries to secure a regulatory license in Hong Kong.
- Crypto Exchange Huobi faced its toughest weak yet with several rumored allegations against it.
Cryptocurrency exchange Huobi is in its toughest week yet with several rumored allegations from media outlets and a bank run threat. The company’s woes started following news reports from multiple media news outlets that the company was being investigated by the mainland police in China.
Notably, Hong Kong-based news outlet Techhub reported that the police had arrested some of its employees, with others asked to leave the country. Expectedly, the rumors created “FUD”, and reportedly caused a capital outflow of more than $100 million across various blockchains at Huobi.
Huobi has since denied the rumors. The company also denied any report that it experienced any major capital outflow during the week. In statements issued to several media outlets, the company claims that it had asked websites that carried the news to remove and correct “misinformation”.
These roller coasters of events come at a time when the company is suiting up to secure a regulatory pass in Hong Kong. Huobi plans to secure a virtual asset trading license under the city’s new crypto regime. However, it is unknown whether this week’s events will affect the company’s application. Nonetheless, the company continues to onboard retail traders on its Hong Kong trading app.
In related news, the crypto exchange recently announced plans to list newly launched PayPal’s PYUSD stablecoin. According to the company, doing so will make it the first crypto exchange to open its arms to the stablecoin that is now the subject of discussion in the crypto community.
According to the company, it will, “support the launch of PYUSD stablecoin and will provide PYUSD/USDT trading pairs with 0 trading fee permanently.” It is important to note that the company failed to disclose when it would list the token on its platform. However, it says it “will open trading for the first time” immediately “when the market circulation and liquidity conditions are ripe.”
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