By Cointime Lu Tian

Cryptocurrencies are unlikely to replace the traditional financial system; rather, they need to integrate with it to achieve mass adoption.

A major obstacle stands between crypto investments and traditional financial investments: currency conversion. Converting cryptocurrencies into fiat currencies entails tedious processes and steep fees, which impede the smooth transfer of funds between the crypto and traditional financial markets. Additionally, the decentralized nature of the crypto market, which means it isn't controlled by a central authority, leads to a lack of official regulatory support and trusted solutions. This also makes potential investors hesitant to enter the market.

To address these issues, the market requires an all-in-one trading platform that embraces regulation and compliance, enabling investors to securely invest in both cryptocurrencies and traditional financial assets. HabitTrade is a compliant global trading aggregator that distinguishes itself from typical centralized exchanges (CEX) or decentralized exchanges (DEX). It offers users cross-market, multi-asset, single-account global brokerage services, permitting investors to directly use cryptocurrencies for worldwide asset allocation.

HabitTrade: Global Asset Aggregation and Trading Platform

HabitTrade serves as an aggregation platform for both Web2 and Web3 trading, bridging the gap between cryptocurrencies and traditional stock markets. This allows users to utilize cryptocurrencies for global asset allocation. The platform provides access to exchanges such as cryptocurrency exchange Coinbase, NASDAQ, New York Stock Exchange (NYSE), Hong Kong Stock Exchange (HKEX), and plans to connect to the Singapore Exchange (SGX) in the near future.

In November 2022, HabitTrade formed a strategic partnership with American cryptocurrency exchange giant Coinbase, becoming an approved infrastructure provider. This collaboration brought cryptocurrency trading, custody, and brokerage services to HabitTrade's global users, initially covering 30 popular cryptocurrencies including Bitcoin and Ethereum. In the first quarter of 2023, HabitTrade partnered with E Fund, a comprehensive asset management company managing nearly 3 trillion yuan, and officially launched the E Fund (Hong Kong) USD Money Market Fund (ISIN code: HK0000499811).

Currently, HabitTrade supports deposits and withdrawals for USDT, BTC, and ETH. Users can invest directly using their USDT or convert BTC and ETH into USDT for investment purposes. Trading options include underlying stocks, ETFs, options, futures, funds, and cryptocurrencies. By using USDT as the primary trading currency, HabitTrade eliminates the barriers between cryptocurrencies and traditional financial markets, creating a compliant channel connecting traditional finance and digital currencies. This enables users to trade various traditional financial assets and crypto assets more efficiently and conveniently, realizing the concept of "one account, global transactions."

Licenses: The Gateway for Cryptocurrency Platforms to Reach the Mainstream

2022 witnessed the onset of a new crypto winter, as several major crypto companies went bankrupt and digital currency prices took a nosedive. Currently, the predominant attitude among global mainstream regulators is one of caution. Acquiring licenses, registrations, and authorizations is crucial for crypto asset service providers to ensure the growth of their platforms and the security of user funds. In countries and regions where exchange regulations are in place, obtaining a license indicates that the platform operates under local government oversight, can legally conduct cryptocurrency business, and offers enhanced protection for users' assets and information.

As of the first quarter of 2023, official data shows that HabitTrade has secured over 10 licenses and qualifications (including temporary approvals) in Hong Kong, the United States, Thailand, Australia, and Europe. HabitTrade currently operates under two main licenses:

HabitTrade is a licensed securities broker registered with the Australian Securities and Investment Commission (ASIC) and is directly regulated by ASIC. HABIT FINANCIAL SERVICES PTY LTD has an Australian Business Number (ABN) of 59 626 521 202 and an Australian Financial Services License (AFSL) number of 514654.

Obtaining an AFSL license means that Australia permits HabitTrade to provide services related to securities transactions while complying with Australian financial regulations. Entities offering financial services in Australia must hold a valid AFSL. The license is issued by ASIC, the statutory regulator of Australia's financial services and markets. Applying for an AFSL involves passing through ASIC's stringent multi-layered review process, and the ongoing supervision from the tripartite agencies AUSTRAC, ASIC, and APRA makes obtaining and maintaining an AFSL highly challenging.

HABIT INC holds a US Money Services Business (MSB) license (No. 31000229716152).

Possessing a US MSB license ensures that the HabitTrade platform operates within US financial regulations. This financial license is supervised and issued by FinCEN (Financial Crimes Enforcement Network under the U.S. Department of the Treasury). Its regulatory scope primarily covers money service-related businesses and companies, including digital currency, virtual currency trading, ICO issuance, foreign exchange, and international remittance.

Adopting regulation and compliance is an inevitable trend in the world of cryptocurrency trading. HabitTrade is seeking a securities license to enforce Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures, ensuring brokerage compliance. Moreover, the platform is in the process of applying for a digital banking license, which will enable it to develop anti-money laundering and risk control models to monitor fund flows. HabitTrade is also working towards establishing mutual recognition between brokerage firms and digital banks, facilitating frictionless transfers of crypto assets and fiat currencies.

In accordance with these licenses and qualifications, HabitTrade must adhere to numerous laws and regulations, prioritizing the safety of customers' funds and data. The platform employs encryption algorithms to safeguard users' personal and financial information, preventing data breaches and unauthorized access to sensitive data. Simultaneously, platform assets are held in segregated custody, ensuring the security of users' funds. HabitTrade consistently maintains an appropriate capital adequacy ratio to guarantee the safety and liquidity of users' funds.

Introducing Soulbound Token HAB: Habit Credentials

In February, HabitTrade introduced Habit Account Bound (HAB), a unique non-fungible token (NFT). The token release details are as follows:

Token symbol: HAB

Network: Ethereum

Minting via: Habit app (available on the App Store and Google Play), Habit official website

Contract address: 0x8CAfc53311E1829CDA0eDe1faC653dD83FDe1335

HAB is categorized as a soulbound token (SBT), representing a user's identity credentials within the Habit ecosystem. By establishing an on-chain credit score and a secure KYC identity authentication application, along with on-chain transactions and interactive behaviors, HAB tokens serve as a secure identity for users within Habit.

As Vitalik Buterin describes, soulbound tokens are a crucial component in building a decentralized Web3 ecosystem:

"An ecosystem of SBTs could unlock a censorship-resistant, bottom-up alternative to top-down commercial and "social" credit systems."

As an on-chain certificate for Habit users, HAB tokens are "bound" to the user's "soul." Each user can possess only one HAB token on the chain network, ensuring that every individual or entity has a unique identity within the Habit ecosystem. Once distributed, HAB tokens cannot be transferred, sold, or gifted, meaning they cannot be moved from one address to another like a standard NFT asset. This soulbound token design enhances the security of the Habit ecosystem. Since HAB tokens are non-transferable, they are immune to impersonation or fraud. Furthermore, because HAB tokens reside on the Ethereum network, they are tamper-proof and cannot be deleted, making them ideal for storing sensitive data. HAB tokens are also revocable, allowing the token issuer to retract tokens. For instance, if a user breaches the rules or terms of the Web3 ecosystem, the issuer can withdraw the user's HAB tokens, effectively nullifying their associated identity and reputation within the ecosystem. This feature adds a layer of accountability that helps preserve the ecosystem's integrity.

Moving forward, Habit plans to introduce additional types of HAB tokens, including those related to identity authentication and ecosystem security. HAB token holders will enjoy benefits such as airdrops, transaction fee discounts, platform dividend rewards through staking, regular buybacks, and token burn events. Additionally, third-party agreements can utilize HAB tokens for NFT airdrops to deter bot attacks.

Streamlining Investment for Web2 and Web3 Investors

HabitTrade offers Web2 and Web3 investors a more efficient, flexible, and convenient way to invest. The platform has established a single-account, multi-asset financial transaction system that eliminates complex currency exchange procedures and lowers the barriers to entry for investors. Simultaneously, HabitTrade actively embraces market regulation and compliance to boost investor confidence. Furthermore, the platform has introduced the Combo Master plan and the Habit Credits point system to deliver additional benefits and incentives to users.

Moving forward, HabitTrade will continue to roll out high-quality products encompassing various asset classes, investment regions, and themes. Through collaborations with leading global asset management firms, the platform will consistently enrich and expand its wealth management product offerings to cater to the ever-evolving investment and financial needs of investors.