Huobi US (HBUS) Shuts Down

Prerna Sengupta
Prerna Sengupta is a writer for Thecoinrepublic. She is a law student at NALSAR University of Law, Hyderabad. She is interested in Tech Law and is especially keen on cryptocurrency, blockchain, and Bitcoin. She hopes to pursue this field in the future as a lawyer.

Huobi US (HBUS) Shuts Down

  • HBUS struggled to gain traction in the United States and gain enough customers amidst such tough competition.
  • The exchanging volumes on HBUS had tumbled to around $220,000 every day and an absolute bottom level increasingly fit a small-scale exchange.
  • They are going to stop offering trading services from December 15 and they’ve given customers time till January 31 to withdraw their funds.

Singapore-based cryptocurrency exchange Huobi has decided to shut down operations of HBUS, their American partner exchange. Headquartered in San Francisco, Huobi US (HBUS) was launched in July 2018 by Huobi Holdco Inc. to provide a platform for American users to use Huobi since the laws and regulations of the United States prohibited U.S. users from using Huobi.

As a result of this prohibition, they froze the accounts of all US users to prevent any further trading or to transfer funds. They encourage American users, to instead, open an HBUS account and gain access to a wide variety of tokens for trading, low trading fees, and 24/7 tailored customer support to American customers.

HBUS, however, struggled to gain traction in the United States and gain enough customers amidst such tough competition. They also had multiple internal issues as a result of which they had to be shut down. They are going to stop offering trading services from December 15 and they’ve given customers time till January 31 to withdraw their funds. Huobi.com, the web address of HBUS now directs to huobi.com.

The exchanging volumes on HBUS had tumbled to around $220,000 every day and an absolute bottom level increasingly fit a small-scale exchange. HBUS conveyed just a moderate choice of 56 sets, as certain benefits were pulled back from US traders because of local security laws. HBUS exchanging had nearly solidified for most small altcoins, and the exchange did not even have a critical Bitcoin (BTC) showcase.

HBUS focused on compliance but failed to deliver in terms of regaining interest and liquidity. While at the same time, Huobi turned into a powerhouse of crypto trading, especially in the Chinese market, answering the demands of Chinese users.

 

Annotation 2019-12-10 131622
Source: finance.yahoo.com

 

HBUS recently celebrated the expansion of the HUSD stablecoin, so the decision to close was surprising and relatively unexpected. The HUSD token is mostly used on Huobi Global and despite the closing of the US branch, it still keeps its dollar pegs and activity levels.

Through the span of 2019, U.S. purchasers have been restricted from most global markets, and have lost access to various coins and tokens. Generally speaking, retail enthusiasm for owning crypto coins has been supplanted with doubt.

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