• Trading in crypto derivatives is prohibited for Huobi users in China

  • Due to the government’s broader cryptocurrency crackdown, Chinese customers will no longer be allowed to trade crypto derivatives on the Huobi market.

    Huobi, a cryptocurrency exchange platform, has revised its user agreement contract to prohibit consumers in China from trading crypto derivatives.

    The ban on crypto derivatives trading applies to customers in China, Taiwan, Israel, and Iraq, according to the Huobi Global website’s amended user agreement section. Other countries that are confined to retail customers include the United Kingdom, Bolivia, Bangladesh, and Ecuador, to name a few.

    The crypto derivatives trading ban comes on top of the company’s long-standing bans on using its platform in areas like Hong Kong, Japan, Cuba, Iran, North Korea, Sudan, Canada, and the United States, to name a few. Users who break these limits risk losing their accounts, according to the company.

    Huobi’s restriction on crypto derivatives trading for Chinese consumers is most likely related to Beijing’s renewed crackdown on cryptocurrency. Earlier this month, the site barred new users from trading crypto derivatives in the country, as well as lowering the permitted leverage from 125x to less than 5x.

    In recent weeks, Chinese authorities have increased the ante, even targeting the mining industry, forcing over 90% of the country’s Bitcoin (BTC) miners to shut down.

    Some businesses have begun to relocate to other countries, and Bitcoin’s hash rate is expected to drop significantly when a big percentage of the network’s hash power is taken offline, at least temporarily.

    Huobi’s prohibition is also likely to limit Chinese crypto derivatives traders’ options. For those wishing to trade highly leveraged bitcoin contracts, platforms like Binance and OKEx may be the next stop.

    For its part, Binance has been under to greater regulatory scrutiny. Regulators in the United Kingdom, Japan, and Ontario, Canada all sent notices to the exchange behemoth last week.

    What's your reaction?
    Happy0
    Lol0
    Wow0
    Wtf0
    Sad0
    Angry0
    Rip1