All the countries which have decided to allow cryptocurrency, there has been a great competition between the leading crypto exchanges. As per the latest report shared by Coindesk, Singapore-based exchange Huobi Group has a special growth strategy for the leading crypto market which is to partner with the local entities and split the profits to 50/50.
David Chen, who is the senior business director said that 150 platforms under the Huobi Cloud Umbrella will be joined by the Hiza Exchange in May.
Chen added that currently there are 80 like-minded partnerships which are currently in Pipeline. He further added, "We will help them get their trading volume up and we’ll expand our business when the market is more mature."
Leading crypto exchanges such as Binance are launching independent subsidiaries in emerging markets such as Uganda or investing in the local exchanges the way Bitrex did with the South African Exchange VALR. Just like Bitrex, Huobi Group offers partners HIZA to access to its global order books for prime liquidity.
With the method of developing partnerships, Huobi isn't acted upon the same regulatory risks which they normally face in these types of markets. Chen said that in the case of South Africa's HIZA exchange, it holds its customer data, hence its HIZA responsibility to maintain it properly.
Moreover, Houbi Group has earlier made cloud partnerships which are currently active and they are able to gain $1.5 million in net profit since October. By 2020, the Huobi Group goal is to obtain $55 million in daily volume alone just by these partnerships.
In Nigeria, the SaBi Exchange founded by Lucky Uwakwe has come across various issues about the regulatory atmosphere waiting ahead, if they try to boost volume. Due to this, the exchange is taking a multi-pronged approach with both peer-to-peer (P2P) and over-the-counter (OTC) services.
He said, "We are creating options to give us a room in case the government decides to shut down our operations with the banks. We want to create options for users so that they can do what is more comfortable for them."
Until this point, there hasn't been as much directing outlawing of cryptocurrencies in these jurisdictions, as there is a deficiency of regulatory standards being implemented. Faith Obafemi, a Nigerian lawyer, said that “Bitcoin trading was not banned,” but various banks and financial institutions were banned from investing in cryptos.
Talha Idris, Founder of HIZA said that the South African Government is looking for a more dynamic approach in which they want comments in research and update regulations consequently.
Huobi Group will be in great profit from this project, as a survey by Hootsuite in January 2019 reported that 11% of mobile users in South Africa own some crypto. Uwakwe said that there has been a local demand as well as push. He added,
“Even when there are many bans and restrictions, people find a way to get these things.”