Just eight months after its launch, the Australian subsidiary of Huobi will be absorbed by Huobi Global. According to an official Facebook post published on February 25, the company cited the recent bear market and fresh redundancies as the reason for the development. The Singapore-based Huobi Global launched its Australian platform in July 2018, calling the move to the country “a natural fit.”
According to Huobi Australia’s announcements, the subsumption under Huobi Global will take effect as of February 26:
“Please be informed that due to poor market conditions and associated recent staff redundancies here at Huobi Australia, all operations, including the management of our platform, social media channels, and customer support will be managed by our team at Huobi Global headquarters starting 26th February 2019.”
Following the announcement, the exchange said that it has forgone plans to add a fiat currency on-ramp. The exchange will retain its current coin-to-coin format as the only option. Huobi will be canceling its registration with the local regulator, the Australian Transaction Reports and Analysis Centre, as it is only required in cases of fiat on-ramps.
Despite reported redundancies and the absorption of its Australian operation, Huobi Global reported a 100 percent growth in worldwide trading volumes in 2018 over 2017. Moreover, the flagship Huobi Global reportedly expanded its staff from 400 employees in early 2018 to more than 1,300 people by 2019.
However, other major players in the industry have faced a much tougher fate. Canadian exchange Coinsquare, mining giant Bitmain, blockchain software firm ConsenSys and decentralized social network Steemit were all forced to make significant cuts to its staff and close many of their operations across the globe.