Huobi's Brazilian Operations
With strong support from its parent company, Huobi has announced its entry into the Brazilian market, aiming to fully localize its products and services. Founded by Li Lin in 2013, Huobi has grown into one of the world's largest cryptocurrency exchanges, serving millions of users across 130 countries with a daily trading volume of $10 billion.
Unlike local Brazilian exchanges Foxbit and Mercado Bitcoin, Huobi will initially focus on crypto-to-crypto trading and its Huobi Cloud solutions. Frank Tao, CEO of Huobi Brazil, stated:
"We’re entering Brazil to become a key partner for traditional brokers and investment banks in cryptocurrency trading."
Huobi Global, the exchange’s international platform, will serve Brazilian investors.
Market Timing and Challenges
The decision to enter Brazil coincides with a volatile period for cryptocurrencies. Eight months after Bitcoin’s peak popularity in Brazil, enthusiasm has waned, but studies indicate irreversible growth in crypto adoption.
- Price Volatility: Bitcoin’s value plummeted from $19,000 (December 2017) to ~$6,000, driving away speculative investors.
- Local Competition: Traditional brokers delayed launching crypto exchanges, while trading volumes dropped by 50%.
Despite the downturn, Huobi sees opportunity in Brazil’s maturing market.
Competitive Advantages
- Diverse Offerings: 150+ cryptocurrencies, including Bitcoin, Ethereum, and lesser-known tokens like Iota and Tron.
- Low Fees: 0.2% trading fee, undercutting Foxbit (0.25%–0.5%) and Mercado Bitcoin (0.3%–0.7%).
- Liquidity: Tight spreads and high liquidity from $10B daily global volume.
- Security: An investor protection fund compensates users affected by hacks—a critical feature given frequent blockchain attacks (e.g., Coinrail 2018 breach).
👉 Explore Huobi’s secure trading platform
Strategic Focus
Initially targeting institutional clients, Huobi Brazil will bypass fiat services (already dominated by local exchanges). Users can:
- Transfer existing crypto assets to Huobi Global.
- Trade directly without fiat gateways.
Frank Tao emphasized long-term goals:
"Our blockchain ecosystem spans partnerships with public institutions, universities, and financial firms. We aim to deepen research collaborations with Brazilian academia."
Funding and Global Reach
Backed by Sequoia Capital and ZhenFund, Huobi has never faced funding constraints. Its primary revenue (80%) comes from trading fees, supplemented by blockchain consulting and financial services.
Huobi operates in Singapore, Canada, Australia, and beyond, with HBUS facilitating U.S. access.
FAQs
Q: Why is Huobi entering Brazil now?
A: Despite recent market downturns, Brazil’s crypto adoption is growing long-term, making it a strategic expansion target.
Q: How does Huobi’s fee compare to local exchanges?
A: At 0.2%, Huobi’s fees are significantly lower than Foxbit’s and Mercado Bitcoin’s.
Q: What security measures does Huobi offer?
A: A protection fund safeguards users against hacks, a rarity among exchanges.