South Korean media New1 reported on January 9 that cryptocurrency exchange Huobi Korea is preparing to buy its shares from Huobi Global and change its name. Huobi Korea is about 72 percent owned by Huobi Global co-founder Leon Li. Zhao Guobang, chairman of Huobi Korea, will take over Lee's stake in the South Korean company. Cho is also the owner of a large cryptocurrency mining firm in the country, News1 reported.
Huobi has encountered some problems in recent days. The company laid off 20% of its workforce on Jan. 6, after a reported outflow of $6 million that week. Rumors of Huobi’s global problems have been swirling for weeks. It was one of the original partners in the city of Busan's quest to become a "Blockchain City of Korea," but was canceled along with four other global partners late last year. In October, Li sold his stake in Huobi Global to Justin Sun.
One of the most important reasons why Huobi Korea decided to distance itself from Huobi Global was because of regulations, as in 2021, the exchange had to suspend all trading for five months to comply with regulations following a change in Huobi Global’s corporate location.
According to an employee currently working at the exchange, Huobi Korea hopes to prove that it can be a safe “domestic exchange” by shedding its image as a “Chinese exchange.”
