• Huobi Exchange No Longer Accepts Chinese Users Following Crypto Crackdown

  • To comply with China’s recent crypto crackdown, Huobi, China’s largest Bitcoin Exchange, has implemented a measure to prevent mainland Chinese residents from registering on its platform by preventing the addition of accounts with Chinese mainland phone numbers.

    Huobi will prohibit the creation of new Chinese accounts.

    Huobi Global, often regarded as one of the “big three” in the global cryptocurrency exchange space, along with Binance and OKEx, has attempted to comply with new Chinese regulations that have recently taken effect. The firm, founded in 2013 in Beijing by Leon Li, is now prohibiting the registration of new accounts on its exchange that use Chinese mainland phone numbers. However, new user onboarding has not been halted in Hong Kong.

    There is no indication that Chinese users are completely barred from using Huobi. This is not Huobi’s first run-in with Chinese authorities; in 2017, the Chinese government prohibited the hosting of trades between cryptocurrencies and fiat money, prompting Huobi to suspend withdrawals from its exchange. In response to a Chinese cabinet crackdown, Huobi banned Chinese users from trading riskier derivative-type products in June 2021. Huobi’s Beijing entity will be dissolved in July 2021.

    Asian governments are putting up a fight against Huobi.

    Nine Chinese government institutions, including the People’s Bank of China, have prohibited overseas exchanges from hiring Chinese workers for marketing, payment, and technology jobs, among other things. Huobi employs over 1300 people across 170 countries. The People’s Bank of China has also declared that all cryptocurrency transactions are now illegal in China. Huobi has recently faced regulatory backlash in Thailand, with the Thai SEC requiring the exchange to return all assets to customers by early September 2021, after the body determined that Huobi was operating with an insufficient management structure.

    Huobi’s global reach remains intact.

    Huobi Global was founded in 2013 with the goal of breaking new ground in core blockchain technology and bridging the gap between blockchain and other industries. Huobi has expanded its services to include public chains, digital asset trading and wallets, derivatives, mining pools, and digital asset research. Hubi recently established the Global DeFi Alliance to establish and promote industry best practices, advance DeFi research, and promote DeFi East-West collaboration.

    It has also launched Primepool, a digital asset mining pool where users can participate in asset-locking activities and earn rewards by staking assets on Primepool. Huobi’s headquarters are in Seychelles, but it has subsidiaries in Singapore, Malta, Hong Kong, South Korea, Japan, Malaysia, and the United States of America. Huobi is a publicly traded company on the Hong Kong stock exchange.

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