Huobi Officially Launched Token Management Rules
November 28th, Singapore, Huobi Global Limited officially launched the Huobi Token Management Rules. The rules consist of 25 articles, that regulate token management on Huobi platform from several aspects including information disclosure, inquiries and investigations, as well punishment of irregularities, in order to strengthen the protection of the legitimate rights and interests of investors.
According to the rules, project teams should publish all the information that may have a great impact on the token in time and ensure the disclosure is true, accurate complete and no false, misrepresentations or major omissions. Particularly in the form of semi-monthly reports or quarterly reports, to update their new progress in technical code, market activities, the institutional investment they gain, community building, and other important information in the Huobi Coinbook.
If the project team has been involved in a particular incident, they should make a temporary disclosure within 24 hours in addition to the regular reports. A particular incident includes, but are not limited to, changes in core team members; major technical faults; changes in product and technology directions; core team suspected of major legal risk events; major negative news and factors that affect the volatility of the token price, including unlocking or redeeming the locked tokens.
Huobi also indicated that they would irregularly conduct inquiries and investigations on the project teams and referrer institutions and they need to respond within 24 hours. The inquiries and investigations may include, but are not limited to, the major content committed in the white paper; safety reviews of their tech codes; significant changes in holdings of project teams or the major token holders as well as their performance in tokens that promised to be locked.
Huobi also listed different punishment methods of irregularities, including adding ‘ST’ warning sign to risky projects; hiding trading pairs and even ‘stop trading’. When a token enters the hidden state, Huobi would assess whether this token should get into the cleaning process; for those tokens that were prohibited from trading, they may immediately enter the clearing process. The rules will take effect on December 1st.
A spokesman from Huobi said that:
“As one of the world’s leading digital asset trading platforms, Huobi is expected to build bridges of trust between multi-parities including the project teams, investors and trading platform through information disclosure and setting up regulation rules. We launch Huobi Token Manegenment Rules to increase transparency and compliance of the crypto industry.”