As China Softens Stance on ICOs, Huobi Exchange Announces $93 Million Blockchain Fund

As China Softens Stance on ICOs, Huobi Exchange Announces $93 Million Blockchain Fund

Huobi, the world’s third largest cryptocurrency exchange, has reportedly teamed with other substantial Asian-based partners to launch a $93 million fund to invest in blockchain start-ups.

Joining Huobi in the venture are investment firm NewMargin Capital from Beijing and South Korean online brokerage firm Kiwoom Securities Co, Ltd.

South Korean banks including Korea Development Bank and Industrial Bank Of Korea will be investing in the fund as limited partners while Mirae Asset Financial Group, headquartered in Seoul, will also be climbing aboard.

Changing Political Landscape

According to reports from China Money Network, the new fund will specifically “be investing in blockchain start-ups in China and South Korea” and is intended “to encourage cooperation between blockchain initiatives between the two countries.”

Huobi’s main exchange competitor, Binance, had days before stated their intention to launch an investment fund of their own.

The funding news from both Huobi and Binance coincides with subtle changes in the official stances of both China and South Korea as both now appear to be softening their original hardline stances against cryptocurrencies and the ICO fund raising model.

This week, President Xi Jinping of China surprised some commentators by praising blockchain and suggesting these scientific advancements could be key in “reconstructing the global innovation map and reshaping the global economic structure.”

And last Thursday, the South Korean National Assembly has made an official proposal to allow ICOs to operate within the country and overturn its current blanket ban.