- Huobi has reportedly suspended futures and leveraged trading for new users.
- There is no reason for the implementation of temporary suspension.
- The exchange also reportedly reduced its miner hosting services in China.
Seychelles-based cryptocurrency exchange Huobi has reportedly suspended futures and leveraged trading for new users in some countries. However, raising questions about the regulatory scrutiny facing digital assets.
According to a Bloomberg report, Huobi limits these services in a handful of jurisdictions. For instance, it did not mention which countries will be affected. More so, there was also no word on the reason for the implementation of temporary suspension. Even more, it could be connected to perceived regulatory uncertainty in China.
Moreover, the exchange also reportedly reduced its miner hosting services in China after regulators in the country reaffirmed their idea to crack down on crypto trading activities. But, China has constantly reiterated plans to reduce the domestic cryptocurrency market and its recent comments do not indicate a material change in policy.
Earlier this year, Huobi was eyeing expansion in Hong Kong after getting a new regulatory clearing from the region’s securities regulator. This paves way for a new crypto asset management portfolio. More so, the company received ‘Type 4’ and ‘Type 9’ licenses from the Hong Kong Securities and Futures Commission in July 2020.
According to Messari data, Huobi Global was the third-largest crypto exchange by volume, processing $9.3 billion worth of transactions.
Due to the recent FUD-based headlines around the crypto market, sell orders on Huobi surged. Even more, the look of a co-ordinated selloff and retail capitulation has sheared over $1 trillion off of collective crypto prices in the last week.