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- The regions of suspension and the reason behind it are still unspecified
- The exchange has scaled the miner hosting services in China in light of the crypto ban imposed by the country
- Huobi did not suspend the operation of its mining pools
Major cryptocurrency exchange Huobi has recently decided to halt its operations involving futures, and leveraged trading reports Reuters. The suspension of Huobi’s services comes together with the recent announcement of the cryptocurrency payments ban in China. As per Bloomberg, the countries in which the services will be stopped have not been announced yet. Neither has the reason for service suspension been disclosed. However, people think that it may be somehow related to China’s reiteration of the crypto ban.
Huobi’s Suspension May Be Closely Tied to China’s Crypto Ban
The Seychelles-based Houbi global happens to be the third-largest cryptocurrency exchange by volume. According to the data by Messari on May 23, it encountered transactions worth $7.3 billion. Previously, the exchange has scaled the miner hosting services in China in light of the crypto ban imposed by the country. Huobi told Reuters that services would be suspended for all new users in China. It also added that the exchange is currently focusing on expanding its services overseas.
Huobi Abides by the Evolving Policies to Protect Investors
According to Huobi’s statement to CoinDesk, due to recent dynamic changes and to protect the interests of investors, a handful of services will be stopped in certain regions. It added that they stick with evolving policies and regulations of each jurisdiction to preserve the well-being of the users. However, Huobi did not suspend the operation of its mining pools.
The National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China issued a crackdown statement which asked banks and companies not to accept payments in cryptocurrencies. China has previously imposed similar bans in 2013 and 2017. The current ban is nothing new for Chinese crypto users. The Chinese mining industry remains unaffected with notice, and people can still transact crypto overseas through OTCs.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
