The Huobi exchange has banned the trading of cryptocurrency derivatives and cryptocurrency transactions for clients from 11 countries in accordance with the requirements of regulatory authorities.
According to Huobi’s updated User Agreement, traders from China, Taiwan, Israel, Iraq, Bangladesh, Bolivia, Ecuador, Kyrgyzstan, the Republic of Crimea and the United Kingdom cannot use the exchange to trade cryptocurrency futures contracts. For the UK, the ban only applies to retail investors. In addition, the exchange is prohibited from conducting cryptocurrency transactions to citizens of the United States, Canada, Hong Kong, Japan, Cuba, Iran, North Korea, Sudan, Syria, Venezuela and Crimea.
A month earlier, the management of the exchange had already warned that it would ban the trading of cryptocurrency derivatives, exchange traded products (ETP) and some investment products using leveraged funds. But then the exchange had not yet published a list of countries that fall under the restrictions. According to Huobi, the exchange strives to comply with the regulatory requirements of each jurisdiction to avoid risks, preserve users’ funds and protect their interests.
Huobi’s actions are related to the intensified measures of the Chinese authorities against the trading of digital assets on exchanges and over-the-counter (OTC) platforms. The Chinese government believes that crypto assets are used primarily for money laundering and risky market speculation. According to the Chinese police, the number of scammers in the cryptocurrency field is constantly growing. This was the main reason for the “pressure” on the industry.
So, last week, the People’s Bank of China (PBOC) banned banks from serving individuals and firms working with cryptocurrencies. Even well-known Chinese Internet services and social networks “boycotted” the exchanges Binance, Huobi and OKEx, ceasing to issue information on them.
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