News1 reports, citing unnamed Huobi Korea sources, that on January 9, 2023, the Korean division of the Huobi Global cryptocurrency exchange began preparing a buyback procedure for its shares owned by the parent company.
The Korean branch plans to change the commercial name:
“Huobi Korea is constantly suffering from the image of the Chinese exchange. The name change and share buyback can be interpreted as an attempt to show that it is a safe, national exchange. This is an opportunity to break the taint and take an independent path in the Korean market before problems at Huobi Global become too critical,” News1 said in a statement.
The situation around Huobi Global has negatively affected Huobi Korea’s business and its users several times. For example, in 2021, following the enactment of the Special Financial Information Act, Huobi Korea was forced to suspend transactions for five months due to the relocation of Huobi Global headquarters.
Now Huobi Korea, like its parent company, is facing increased pressure from customers and asset stripping amid rumors of a lack of working capital and fears of a possible bankruptcy of the parent company.
Earlier, the cryptocurrency exchange Huobi announced its intention to lay off most of the staff in the new year, as well as reduce the wages of the remaining employees.
