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Users from China will not be able to trade cryptocurrencies on the Huobi exchange

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  • Chinese officials continue their crackdown on cryptocurrencies
  • Huobi exchange bans all forms of cryptocurrency trade on its platform for users from China
  • The latest move is only a part of a wider crackdown on cryptocurrencies.

In another blow to the cryptocurrency trade in China, users from the nation will not trade cryptocurrencies on the Huobi exchange. The move could be seen as another logical step in the general onslaught on the Cryptocurrency industry as a whole in China. In the last few days, the Communist-ruled nation has come down heavily with the crypto trade, which had blossomed earlier. Unfortunately, China is not alone when it comes to muzzling the spread of cryptocurrency. Major nations like the US and Turkey are also trying to bring the DeFi platforms under regulations.

Huobi exchange has banned crypto derivatives trading for consumers in China.

Crypto Exchange platform Huobi has banned crypto derivatives trading for consumers in China. It has updated its user agreement document to this effect. According to the latest user agreement, the ban in cryptocurrency trading is applicable for users from countries such as China, Bolivia, Bangladesh and Ecuador, Taiwan, Israel, and Iraq. The prohibition in the UK is restricted to retail customers.

Already the ban is in place on the use of the platform for cryptocurrency trade in the United States, Iran, North Korea, Hong Kong, Canada, Cuba, Sudan, and Japan. Accordingly, the exchange warned its users of the abovementioned countries not to indulge in any cryptocurrency-related trade or else they will risk losing their accounts.

Huobi platform had barred new users from dealing in cryptocurrency in June.

Huobi was founded in 2013 by Leon L.in China but has since shifted its headquarters to Seychelles. The latest ban by Huobi could be linked to the renewed crackdown on cryptocurrency trade by authorities in Beijing. Earlier in June, the Huobi platform barred new users from dealing in cryptocurrency and reduced the permitted leverage from 125x to less than 5x.

Bitcoin mining is seriously curtailed in China

In recent times Chinese authorities have banned Bitcoin mining in the country. Earlier, 90% of the Bitcoin mining was done in China. The cheap power and labor served as an incentive, and large mining hubs came into Northern China. This part of China had large coal reserves, and it produced cheap coal-based electricity used for Bitcoin mining.

Bitcoin mining is an energy-intensive process and needs massive amounts of power. Chinese officials have started to close Bitcoin mining activities citing environmental concerns. However, many feel that it is only a part of a wider crackdown on cryptocurrencies. Many companies have, since the recent crackdown, moved their mining operations outside China. The preferred locations include Mongolia and Eastern European nations.

The latest move by the Huobi platform to stop Chinese users from engaging in cryptocurrency trade is crippling and shrinks the options available to Chinese crypto derivatives traders. Other platforms like Binance and OKEx may soon feel the heat and could be the next to receive diktats from Beijing. Binance is already subject to increased regulatory scrutiny and last week received notices from regulators in the United Kingdom, Japan, and Ontario, Canada.

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