Huobi’s acquisition plans were halted after Chinese authorities opened an investigation.
Reports indicate that Huobi had been planning to acquire two major Asian exchanges: Bithumb and bitFlyer. Bithumb is one of South Korea’s top four cryptocurrency trading platforms, while bitFlyer, with around 2.5 million users, is one of Japan’s largest cryptocurrency exchanges.
Both deals have reportedly been suspended after Chinese authorities launched an investigation into Huobi. The pause comes amid a broader crackdown on money laundering initiated by Beijing that targets telecoms and the cryptocurrency sector. Sources say commercial banks are freezing credit and debit cards tied to any over‑the‑counter (OTC) cryptocurrency transactions.
Chinese crypto miners are also feeling the impact of the card freezes, facing difficulty paying for the electricity required to run large‑scale mining operations.
The initial report was shared by the China‑based crypto news source @WuBlockchain on Twitter.
“Wu learned that Huobi, the largest exchange in China, was attempting to acquire bitFlyer and Bithumb, the biggest exchanges in Japan and South Korea respectively. The price for bitFlyer was reported around $500 million. However, because Huobi is under investigation by the Chinese government, both deals have been suspended,” the report stated.
In a follow‑up to the Twitter thread, WuBlockchain noted that Huobi’s efforts to internationalize have progressed slowly. That sluggish pace may be due to the company’s deep ties to China: most of its staff, investments, users, and revenue streams remain concentrated there.
Last November, Huobi exited the U.S. market. Its remaining international branches are reportedly based in Japan and South Korea. The thread suggested Huobi was aware of the risks of overreliance on the Chinese market and prioritized expansion abroad. Yet those markets may not have been ideal targets: “their users are very insular and the government oversight is extremely strict,” the commentary warned.
Still, Huobi appears to have significant financial resources for overseas expansion. WuBlockchain added that rapid growth in Huobi’s derivatives and other businesses this year could generate substantial profits available for acquisitions.
“Bloomberg once reported Huobi’s 2019 revenue at roughly $680 million, with an estimated profit margin of 50% or higher. Given the strong rise in cryptocurrency prices this year, Huobi’s revenue is expected to have increased by more than 50%,” WuBlockchain reported.