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Huobi Global applied for a cryptocurrency trading license in Hong Kong.
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Other exchanges, including Gate.io, OKX, and Bitget, also applied for licenses.
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Huobi Global's application is a major step towards complying with regulations.
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The announcement of the license application triggered a rally in Huobi Token (HT) price.
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The rally in HT price could lead to a short-term comeback in exchange tokens.
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Justin Sun, advisor at Huobi Global, announced plans to open Huobi Hong Kong.
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The new exchange will focus on trading services for institutional investors and high net worth individuals.
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The announcement positions Huobi as a trusted and secure platform for larger investors in Asia.
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The rally in HT price was part of a larger trend of double-digit rallies in exchange tokens in February 2023.
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As more exchanges apply for licensed operations in Hong Kong, it could fuel a bullish narrative among holders of their native tokens and trigger a recovery in prices.