Huobi to ban cryptocurrency derivatives trading for Chinese users
The Huobi exchange announced that Chinese residents are banned from using Huobi’s crypto derivative products
Huobi’s ban on crypto derivatives in China
The Seychelles-based cryptocurrency exchange founded in China, Huobi, has officially banned Chinese users from trading cryptocurrency derivatives, said the Huobi Global website.
Huobi’s ban also affects Chinese crypto derivatives traders, limiting options available on the Huobi exchange.
In recent weeks, amid a broader cryptocurrency crackdown, Chinese authorities shut down several Bitcoin (BTC) miners.
This ban forced many miners to focus on foreign companies, including the US rival that, obviously, benefits from this situation, using it as an opportunity to promote cryptocurrencies.
At this point, nearly 90% of Bitcoin mining capacity will be shut down in the near future.
Earlier in June, Huobi banned new Chinese users from trading crypto derivatives resulting in the reduction of the allowable leverage from 125x to less than 5x.
Following the ban, many users will be forced to turn to other platforms like Binance and OKEx.
Similar ban in other countries
However, China is not the only country facing these severe restrictions. Indeed, the exchange has ceased operations in many other countries including Taiwan, the United States, the United Kingdom, Canada, Israel, North Korea, Iraq, Japan, Cuba, Iran, Sudan and some others.
“The Company may suspend or terminate your account or use of the Service, or the processing of any digital asset transaction, at any time if it determines in its sole discretion that you have violated this Agreement or that its provision or your use of the Service in your jurisdiction is unlawful These prohibitions are justified by the platform because these crypto assets are particularly risky and subject to very large fluctuations in their prices,” the Huobi Global website reads.
As we can see, China is joining the ranks of countries that have halted crypto derivatives trading on the Huobi exchange. However, we can’t deny that Chinese cryptocurrency crackdown has played a significant role in this situation as well.
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