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Huobi Global recently brought into the news when the well known crypto exchange is reported to shut down the operations for a stablecoin. The crypto asset is embattling HUSD stablecoin which is closely linked to the crypto exchange.
On October 27th, Huobi notified its users that in compliance with their Huobi Global Token Management Rules’s Article 11 the crypto exchange decided to halt the trading services for HUSD delisting the stableocin. The company cited their efforts for promoting “healthy development of the blockchain ecosystem.”
Further it also added the delisting and termination process for the stablecoin to start on October 28th, 2022. The crypto exchange will be converting the assets of users from HUSD to USDT stablecoin. The platform expected the completion of the whole process by the first week of November 2022.
Huboi Global launched a relatively minor HUSD stablecoin in 20018 and termed it as a solution for stablecoin. The crypto asset, like any other stablecoin has a backing of fiat currency, has backing of USD. Although the firm which developed the crypto asset was Stable Universal, the stablecoin was popular as the Huobi’s token. It could be due to the exclusive launch of HUSD on the crypto exchange. The stablecoin achieved over 219 million USD in terms of market capitalization.
However, there were notable flaws in HUSD and they were exposed with the time. The major problem was seen in August when the stablecoin lost its peg from the USD and lost up to 8% of its value. This instance took place after the closing of several accounts given the regulatory concerns.
Crypto exchange Houbi Global was founded in China, later registered in Seychelles though. Recently the crypto exchange is reported to initiate the purchasing of crypto assets over its platform using fiat currency. The service is said to be for the Latin American region and AstroPay would facilitate it.
One of the largest crypto exchanges in the world is also working towards boosting their operation through facilitating fiat options across Brazil, Colombia, Chile, Mexico, Peru and Uruguay.
Huboi stated the users within the aforementioned countries will be allowed to buy the crypto assets and trade them using payment methods of their choice. This would include a wide range of offerings including credit and debit card payment options, bank transfers, etc. It will also include several local alternative options including Pix payment system for the government of Brazil and System of Interbank Electronic Payment (SPEI) of Mexico.
The crypto exchange is said to be in line with similar exchanges on a global level which also enabled services of purchasing crypto assets using fiat currencies. In May, Huboi Global was reported to purchase Bitex, a prominent crypto exchange in the Latin American region. The latter has its operations spread across Argentina, Paraguay, Chile, etc.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
