Huobi, one of the largest cryptocurrency exchange platforms in China, appears to be pursuing further expansion of its business following the recent regulatory clearance in Hong Kong.

According to an official announcement by Huobi Technology Holdings Ltd., the company’s asset management subsidiary has secured approval from the Hong Kong Securities and Futures Commission to launch a cryptocurrency asset management portfolio.

The news is a follow-up to Huobi securing “Type 4” and “Type 9” licenses from the SFC back in July 2020. In Hong Kong, a Type 4 license enables a company to act as a securities investment adviser while a Type 9 license covers asset management.

Dubbed Huobi Asset Management, the firm is now looking to launch three cryptocurrency asset funds following the approval by the SFC, according to reports in Chinese media. However, the launch will be contingent on the fund complying with additional provisions issued by the SFC.

Tweeting on Thursday, Beijing-based reporter Colin Wu remarked that Huobi’s entry into the crypto asset management arena may incentivize institutional investors in Asia to consider crypto investments.

Wu also stated that Huobi’s planned crypto asset management fund will include both Bitcoin (BTC) and Ether (ETH).

According to data from crypto research firm Messari, Huobi is second only to Binance in terms of real spot trading volume.

Huobi’s crypto asset management license from the SFC comes amid reports that regulators in Hong Kong are close to banning retail crypto trading. Indeed, Huobi is among a group of global cryptocurrency exchanges challenging the legitimacy of the move.

Following China’s ban on crypto trading and initial coin offerings in 2017, several Chinese exchanges moved their offices elsewhere with Hong Kong and Japan being favored destinations at the time.