Saturday, October 1, 2022

Huobi Discontinues Crypto Derivatives Trading For Chinese Investors

Due to China’s ongoing crackdown on cryptocurrency, the Seychelles-based crypto exchange Huobi announced to discontinue the trading of crypto derivatives for the Chinese investors. 

Huobi, which is considered to be one of the top three crypto exchanges in China, upgraded its user agreement on June 28. According to the updated agreement, now, the Chinese investors would not be able to trade the crypto derivatives on the platform.

As per the report, Binance and OKEx also have a huge user base in China. Like Huobi, crypto derivatives one of the main businesses of these two crypto exchanges. However, to date, it is unknown whether Binance or OKEx would also halt the derivatives trading services in the country or not.

A week ago, Huobi stopped providing its services to new Chinese users. Apart from this, the exchange also stopped offering bitcoin mining services. It even stopped the sale of mining equipment in China. While doing so, the crypto exchange stated that presently, its main aim is to expand its business, globally.

After China announced a crackdown on the crypto-related activities in the country, the Chinese crypto-industry noticed many changes around itself. The social media platforms in the country banned accounts related to cryptocurrency. 

The Chinese government has toughened its investigation against cryptocurrency-related activities to minimize the disruptive risk to the financial system of the country.

The report states that after the country’s crackdown almost 90 percent of mining capacity in China has been put on hold.

According to the sources, “More than 2 million Bitcoin mining machines are now idle across the Chinese mainland, with emerging overseas markets such as the US and Kazakhstan only able to accommodate 5 percent of the capacity.”

China is not the only country that giving hard times to the crypto exchanges, there are many other countries that are becoming a real challenge for the crypto trading platforms.  

On June 26, the Financial Conduct Authority of Britain stated that Binance Market Limited has not registered itself under the UK regulatory.

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