Huobi founder Du Jun returns
People,  Regulation

Crypto exchange Huobi’s co-founder returns

Du Jun highlighted legal compliance and customer funds security as areas he will focus on after three years building other businesses

The co-founder of China’s top cryptocurrency exchange Huobi, Du Jun, has returned to the company after a three-year absence.

According to a Nov. 18 announcement, Jun returned to Huobi after having co-founded it with Leon Li in 2013 and leaving in 2017 to found financial training firm Golden Finance and venture capital company Node Capital. 

Jun is returning to Huobi at what some sources suggest is a rather critical moment for the company. As Modern Consensus reported on Nov. 17, the exchange is reportedly attempting to acquire Japan’s largest exchange Bitflyer and Korea’s largest exchange Bithumb. But, reports claim investigations by Chinese authorities keep both the deals suspended.

In his return’s announcement, Jun highlights the importance of regulatory compliance for Huobi, pointing out that the exchange and some of its subsidiaries obtained licenses from the Thai Ministry of Finance, Japan’s Virtual Currency Exchange, and Hong Kong’s Securities and Futures Commission, among others. The company is also applying for a Hong Kong Virtual Exchange Compliance License and Singapore PSA License. He said:

“Continuously, we are pushing forward the global compliance process, which is also one of the important measures to cope with uncertainties and manage risks.”

Compliance with know-your customer and anti-money-laundering laws has gotten extra attention in the cryptocurrency industry since the U.S. Department of Justice indicted four BitMEX executives, including CEO Arthur Hayes, on charges of violating the Bank Secrecy Act in October.

Jun also stressed the importance of user safety, saying “many exchanges in the cryptocurrency industry have experienced security problems for a long time.” But, he claimed, Huobi has never had a problem, “which shows that we have invested heavily in platform security and the effectiveness of control measures.” 

He added that up to 15 people control the exchange’s private key, so “if one or several people occur to have any problem, it won’t have any impact on the safety of the platform funds.”

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Adrian is a newswriter based out of Pisa, Italy. He's passionate about cryptocurrency, digital rights, IT, tech and futurology and likes to think about the future in a positive way.