Huobi Group, one of the world's largest cryptocurrency exchanges by trading volume, has officially announced its strategic entry into the Brazilian market. Backed by robust corporate resources, the platform aims to deliver fully localized products and services tailored to Brazilian users.
Overview of Huobi’s Brazilian Expansion
Founded in 2013 by Leon Li, Huobi has grown into a leading global digital asset exchange, serving millions of users across 130 countries with a daily trading volume reaching $1 billion.
Unlike local Brazilian exchanges such as Foxbit and Mercado Bitcoin, Huobi’s initial focus in Brazil will center on crypto-to-crypto trading and promoting its Huobi Cloud solutions. Frank Tao, CEO of Huobi Brazil and former general manager of Cheetah Mobile Brazil, stated:
"We are entering the Brazilian market to become a key partner for traditional brokerages and investment banks in the cryptocurrency trading arena."
Huobi Global, the company’s international trading platform, will serve as the primary gateway for Brazilian users.
Why Brazil? Market Context and Strategy
The Brazilian cryptocurrency market has experienced significant volatility over the past year. While interest in Bitcoin surged dramatically eight months ago, enthusiasm has since tempered. Nevertheless, market studies indicate a steady increase in cryptocurrency adoption, reflecting a maturing local ecosystem.
Last December, at the peak of the crypto hype, Bitcoin’s price soared to nearly $19,000. Today, it hovers around $6,000—a decline of over two-thirds. This correction led many speculative investors to exit the market. Although traditional financial institutions had announced plans to launch crypto exchanges, few have delivered tangible products. Trading volumes, in general, have also declined.
The cooling market sentiment has prompted exchanges to enhance service quality and intensify marketing efforts. During the market peak, some local Brazilian exchanges even suffered system breakdowns due to excessive order volume. The current more rational investor behavior presents a strategic opportunity for Huobi.
Advantages for Brazilian Users
Huobi brings a new level of professionalism and diversity to the Brazilian cryptocurrency landscape. While local exchanges offer a limited selection of digital assets, Huobi provides access to over 150 cryptocurrencies. These range from well-known coins like Bitcoin, Ethereum, and Litecoin to emerging tokens such as Iota, Decred, and Tron.
The platform also offers competitive trading fees and superior liquidity:
- Huobi charges a 0.2% transaction fee, lower than Foxbit (0.25%–0.5%) and Mercado Bitcoin (0.3%–0.7%).
- With billions in daily global trading volume, Huobi ensures narrower bid-ask spreads and deeper market liquidity.
- Users benefit from 24/7 customer support in Portuguese.
Another significant advantage is Huobi’s Investor Protection Fund, which compensates users in cases of security breaches or hacking incidents—a critical feature in an industry prone to cyberattacks. For example, in June 2018, South Korea’s Coinrail exchange lost 30% of its assets to a hack, triggering a 10% drop in Bitcoin’s price. Similarly, the Youbit exchange declared bankruptcy after a major security breach.
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Initial Focus: B2B Services and Future Roadmap
At this stage, Huobi Brazil is concentrating on business clients rather than retail consumers. One reason is that Huobi does not yet support direct fiat currency transactions in Brazil, a service already offered by local competitors. However, users who already own Bitcoin or other cryptocurrencies can register on Huobi Global, transfer their assets, and start trading immediately.
Beyond exchange services, Huobi plans to expand its blockchain ecosystem initiatives in Brazil. The company aims to collaborate with various sectors, including:
- Public institutions
- Financial organizations
- Technology companies
- Investment firms
- Universities and educational bodies
Frank Tao emphasized,
"Huobi has a comprehensive blockchain ecosystem layout. We can establish partnerships with enterprises across upstream and downstream sectors."
The company is particularly interested in partnering with universities for joint industry research.
Strong Corporate Backing
Huobi is committed to becoming a benchmark player in Brazil’s blockchain industry. The global headquarters has pledged full support—both strategic and financial—for the Brazilian operation. Frank Tao confirmed, "Funding is not an issue. Once we secure agreements with major partners, we will have sufficient capital to expand our operations."
Since its inception, Huobi has never faced financial constraints. Early on, it received investments from top-tier funds like Sequoia Capital and ZhenFund. Today, it boasts strong self-sustaining revenue capacity. Approximately 80% of its revenue still comes from trading fees, though the group has diversified into blockchain consulting, research, and financial information services.
While Huobi does not publicly disclose its financials, it is known to have expanded into multiple countries beyond China, including Singapore, Canada, Australia, South Korea, Japan, the UK, and Thailand. It has also entered the US market through a strategic partnership with HBUS.
Frequently Asked Questions
What cryptocurrencies does Huobi offer in Brazil?
Huobi provides access to over 150 cryptocurrencies, including major tokens like Bitcoin and Ethereum, as well as newer alternatives such as Tron and Decred.
How does Huobi’s fee structure compare to local Brazilian exchanges?
Huobi charges a flat 0.2% trading fee, which is lower than many local exchanges. Foxbit, for example, charges between 0.25% and 0.5%, while Mercado Bitcoin fees range from 0.3% to 0.7%.
Is Huobi suitable for beginner cryptocurrency investors?
Yes. With extensive liquidity, Portuguese-language customer support, and a user-friendly platform, Huobi is well-suited for both new and experienced traders looking for a reliable exchange.
What security measures does Huobi have in place?
Huobi operates a Investor Protection Fund that compensates users in rare cases of platform-level security breaches, providing an additional layer of financial safety.
Can I deposit Brazilian Reals on Huobi?
Not currently. Huobi Brazil is initially focusing on crypto-to-crypto services. Users must already hold digital assets to begin trading on the platform.
Does Huobi offer educational resources about blockchain?
Yes. Huobi plans to collaborate with universities and institutions to promote research and education around blockchain technology and digital assets.