Crypto Lovers – Interview with Jeff Mei, Huobi Global

What makes consumers and institutions fall in love with crypto and how do you protect it? Jeff MeiDirector of Global Strategy at Global Huobi share some ideas. Enjoy!

Jeff nice to meet you! Please tell us more about Huobi Group.

Huobi Group was founded in 2013 with the mission of making breakthroughs in core blockchain technologies and integrating blockchain technologies with other industries. Over the years, Huobi has grown its presence to include public channels, digital asset trading and wallets, mining pools, proprietary investments, digital asset incubation and research.

In addition to providing spot trading and derivatives for retail users, we also provide institutional services such as over-the-counter trading, asset custody, asset management, etc. And to grow our ecosystem, Huobi has invested in more than 60 companies in the blockchain industry.

Huobi’s 2,000 employees worldwide provide safe, professional, trustworthy and world-class services to its global customers in some 170 countries.

So impressive that you cover 170 jurisdictions. Cheer! What are the key characteristics you have observed for each major region you serve, e.g. the American market, Brazil – LATAM, Europe, etc. ?

In some markets such as Turkey and Russia, crypto adoption rates are high and there are large numbers of what you call VIP traders, or users who frequently trade large amounts of crypto, using sometimes advanced derivatives. In other markets such as India and Vietnam, there are a large number of retail users, and more user education needs to be done. And in traditional financial centers there is naturally a large concentration of institutional investors – for example, in London, many former FX funds and quantitative trading funds have moved into crypto.

If you had to describe the perfect crypto market (in terms of crypto user adoption, regulator stance, local authorities’ view on crypto, etc.), what would it look like?

The perfect crypto market, in my opinion, is one where online banking adoption is high, cryptocurrencies can be easily exchanged for fiat currencies, and regulators have not only accepted but embraced cryptocurrencies. currencies. We envision a world where regulators not only see the value that decentralized finance can bring to the masses, but also a world where governments understand and appreciate the value that blockchain brings to various industries – especially how smart contracts can be used. to authenticate not only financial transactions, but also processes in other verticals.

What about crypto-friendly banks? Is there?

I am aware that DBS has introduced a trust solution through DBS Trustee – the licensed trust company 100% owned by the bank – to enable its private banking clients to invest and manage their digital assets hosted on DDEX (at namely Bitcoin, Ether, Bitcoin Cash and XRP). The offering builds on DDEX’s existing proposition for private banking clients, which provides security and transparency for crypto-assets with institutional-grade custody and custody services, and robust source due diligence chain.

In March, you spoke at the Blockchain Africa conference on Hacks and Checks: What Keeps a Cryptocurrency Exchange Secure? What does he keep safe?

The rise in the price of cryptocurrencies and related assets over the years has drawn the attention of cybercriminals. Some crypto exchanges might be more prone to attacks because they keep large volumes of digital assets in hot wallets, and these are easily accessible by cybercriminals. Such a practice is generally not recommended. Additionally, bugs and design issues in computer systems can lead to data breaches and security attacks by cyber criminals.

This can all be attributed to the fact that many systems are based on open source technology and cybercriminals are constantly trying to crack the codes.

At Huobi, we have the following measures to ensure the security of our assets:

  • Separation of hot and cold wallets – 98% of digital assets are stored in multi-signature cold wallets, ensuring the security of the private key signing process

  • Multiple backups ensure the availability of private keys

  • A total of 15 private key controllers coupled with multi-signature mechanisms ensure that the security of funds on the platform is not compromised due to the actions of one or two people

  • In-house developed security hardware to ensure storage robustness and reliability

  • Rigorous security process

  • Fund of 20,000 BTC to deal with emergencies

In the meantime, at the user level, we can adopt these measures to protect ourselves:

  • When choosing an investment institution, choose a platform with strict security measures to avoid loss of assets due to flaws in platform security

  • Secure access to your email account – If your email is compromised, you risk losing your digital assets on exchanges

Crypto regulation is constantly changing (to the extreme); how does Huobi deal with this (since you also operate in multiple jurisdictions)?

The evolution of regulations around cryptocurrency is not unexpected. They only reflect the cautious attitude of governments towards new technologies.

We strive to comply with new laws and regulations that may come into effect in the jurisdictions in which we operate and have staff on the ground to keep us up to date with any regulatory changes and developments. The landscape is dynamic, but we are more than ready for the challenge of operating and remaining compliant in all places where we operate.

However, in general, governments take a positive approach to regulation, specifying what exchanges must operate in certain jurisdictions, how transactions are taxed, and so on. work with traditional banking and payment channels, as well as advertising channels. This allows us to expand beyond diehard crypto circles and target more mass market users.

With many crypto exchanges sponsoring different sporting events, what is the next step for Huobi in terms of incentivizing users to join your ecosystem?

One initiative is that we offer high referral fees for users and influencers who invite their friends to join our exchange, in addition to other benefits such as access to coveted token lists.

Sponsoring sporting events sounds like a good idea, but it depends on the market and how easy it is for users to transfer their money from fiat currencies to cryptocurrencies. If it’s not easy, i.e. banks can’t work with exchanges, then it doesn’t make sense to sponsor sporting events and target mass market consumers, because the most of them won’t be able to buy crypto that easily.

About Jeff Mei

jeff mei huobiJeff Mei leads the global expansion of world-leading cryptocurrency exchange Huobi. Originally from Los Angeles, Jeff began his career working in strategy and operations for a global investment bank. He then set up his own consulting company in Beijing and worked on various technology and blockchain projects before joining Huobi in 2020.

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Crypto Lovers – Interview with Jeff Mei, Huobi Global

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