Introduction
HBUS was a digital asset trading platform that figured significantly in the early history of burgeoning cryptocurrency exchanges in the United States. The phrase “hbus” refers to the exchange, its history, tech, and existence in the greater crypto community. Although HBUS is no longer in business, its history is useful in terms of how global cryptocurrency brands tried to enter and do business in line with U.S. regulatory environments. This article explores what HBUS was, how it functioned, and why it counted in the crypto community.
HBUS – The U.S. cryptocurrency exchange formerly partnered with Huobi
History and Founding of HBUS
HBUS was launched as the United States partner of Huobi, the world’s major digital currency exchange. HBUS was launched in 2018 and aimed to bring a professional digital currency trading platform to American consumers that would also satisfy home-country regulatory requirements. It was operated independent of the Huobi Global, but had its own team, management, and compliance infrastructure, but the brand association was evident.
The plan for HBUS was to bridge the gap between the global experience of Huobi and the local regulatory requirement in the U.S. This allowed Huobi to have a presence in America but not actually operate directly there, in part to avoid potential regulatory issues. HBUS had offices in San Francisco, California, already home to so many fintech startups and blockchain.
Platform Capability and User Experience
HBUS provided a user-friendly platform that made trading multiple digital currencies convenient, such as popular coins such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and many others. The platform also included spot trading, web client, and APIs for seasoned members.
Security was of utmost concern for HBUS. The website used fundamental security methods including two-factor authentication (2FA), whitelists for withdrawals, and periodic audits. This made the website’s members feel safe, a necessity in a time when hacking and scams dominated the business.
HBUS tried its best with customer care. Live support, clear ticketing, and tutorial content assisted the user in understanding the trading process and overcoming difficulties in a short time. For the majority of newbies, the site was simplified, so the introduction to the trading of cryptos would not be so intimidating.
Regulatory Compliance and Legal Structure
Since they are a U.S.-based exchange, they had to strictly adhere to the policies of the Financial Crimes Enforcement Network (FinCEN) and others. HBUS is registered as a Money Services Business (MSB), does Know Your Customer (KYC) screenings, and endeavors to comply with Anti-Money Laundering (AML) policies.
This compliance commitment was the deciding factor that distinguished HBUS from most offshore exchanges. In constructing a ground-up regulatory framework, HBUS hoped to gain the confidence of both American regulators and end-users. Nevertheless, that also entailed the platform having to delist or constrain some of the tokens and services so that they would be within the boundaries of the law, but in some cases, frustrating the traders in their quest for more products.
Technology and Trading Platform
The tech stack of HBUS included Huobi’s global platform with custom products for the United States market. The exchange prioritized uptime, transaction speed, and accurate order matching. The exchange backend was able to process thousands of transactions in a second and maintained high liquidity on the majority of trading pairs.
APIs allowed for integration with bots for trading and external software, appealing to the tech-savvy trader. But the web platform was also simple enough for the new player in crypto. Real-time charts, in-depth order books, and archives provided the user the tool of making informed trading decisions.
Role in the Crypto Community
HBUS sought to be more than a trading site. The company regularly made appearances at trade shows, cooperated with blockchain ventures, and engaged the crypto community on social media. It also made education outreach through blog postings, webinars, and guides in an attempt to make virtual currencies more commonplace among the people of America.
In addition, HBUS regularly launched new coins that made it through its due diligence, enabling rising blockchain projects to gain access to a U.S. market. This helped in enhancing innovation and made the platform more practical among early adopters and tech enthusiasts.
How to use HBUS
In order to utilize HBUS, the users had to register, pass through KYC verification, and make a deposit, whether in cryptocurrency or fiat. The platform allowed for USD deposit using bank transfers, and after the verification, the users could trade the supported coins against USD or other coins. Trading was easy. The user selected a trading pair, entered a market or limit order, and viewed their positions in a dashboard. Withdrawals also required verification and passed through several security screening phases. The website also provided guides in taking the user through every step of the process, reducing confusion and maximizing overall satisfaction.
For experienced users, HBUS’s API provided algorithmic trading and portfolio tracking. Institutional traders could request higher withdrawal limits and access to specialist support.
HBUS’s Shutdown and Aftermath
Despite the promising early forecast, HBUS shut down in December of 2019. The company announced that the trading would shut down and asked individuals to withdraw their funds. There were several reasons that explained the shutdown. The U.S. regulatory environment was still challenging, the competition from the exchanges grew, and acquiring a huge, committed user base was not achieved.
The closure of HBUS was among the greater difficulties that most overseas exchanges have been facing in their effort to break into the American market. It also served as a reminder of how important compliance and flexibility are in the cryptocurrency world.
Security Practices and Lessons Learned
The shutdown of HBUS was not the result of a security breach or incident. The exchange had a strong safety history for the user, with no significant loss of deposits or major hacks. This outcome reinforced the value of strong security protocols and regulatory compliance in the safety of the user base and building of trust.
Most of the players in the industry learned a lesson from the HBUS case. New exchanges entering the United States market realized that they need a special compliance team, clear communication, and ongoing interactions with the regulators and the end-users. Some of the members of the team and the tech used in HBUS ended up in other crypto projects, transferring the gained experience.
Comparison with Other U.S. Exchanges
HBUS, in its peak, competed directly with platforms like Coinbase, Kraken, Gemini, and Binance US. The platforms embraced relatively different models of compliance, user-friendliness, and coins offered. Where HBUS emphasized partnership with Huobi and technical capabilities, others emphasized brand legitimacy, license status, or expanded trading offerings.
The rapid evolution of the American cryptocurrency exchange market left only the most agile and better-capitalized platforms standing in the long run. The relatively short life of HBUS highlighted how quickly the market could turn and how critical building a niche is for the exchanges, as well as delivering continuous value to the user.
Conclusion
HBUS, for a short but memorable time, existed in the United States cryptosphere. It was the outcome of a partnership with Huobi, with the objective of providing compliant and secure platform use for American customers. It, in the end, closed down, but HBUS left its influence in the form of calls for transparency in regulations, security, and user education for digital currency trading platforms. HBUS is a fascinating case study for those interested in the history of crypt exchanges in America.
Twitter
Telegram
