Huobi, one of China’s leading crypto exchanges, has banned Chinese and British traders from accessing its derivatives services.
The crypto exchange Huobi no longer provides derivatives services to traders in the UK and China. Only recently, the trading platform updated its terms of service and blocked access for traders from the two countries and other regions.
According to Huobi, traders from China can still access the platform, but only use it for spot trading. Derivatives trading is no longer available to traders from China. Colin Wu said in his tweet: “China’s largest exchange Huobi has updated its terms of service and banned users from trading derivatives in China, the United Kingdom and other places.“
Huobi, China’s largest exchange, updated its user agreement to prohibit users in China, the United Kingdom and other places from using derivatives to trade. pic.twitter.com/RhiwhJHANb
– Wu Blockchain (@WuBlockchain) June 28, 2021
In addition to the UK and China, the ban also affects traders from the US, Canada, Hong Kong, Japan and Israel. You can no longer use derivatives when trading cryptocurrencies on Huobi. However, according to the crypto exchange, this list may also change again if the policies of the countries and the types of products available to traders in these jurisdictions change.
Huobi bans Chinese traders from using derivatives after reducing the allowed leverage from 12x to 5x a few days earlier. In addition, the exchange banned new users in China from accessing derivatives for trading cryptocurrencies.
Before that, several measures have already been taken against crypto activity in China. The Sichuan government banned cryptocurrency mining by cutting power to large mining farms in the region.
It followed the People’s Bank of China’s call for banks and Chinese payment companies to stop processing crypto transactions. Some banks have already asked their customers to stop making crypto transactions.
The ban in the UK could be due to Binance’s difficulties with the Financial Conduct Authority (FCA). The FCA cautioned Binance because the company does not have permission to carry out regulated activities in the region.