Lately, Huobi Global seemed to be having a lot of problems. While Binance, Crypto.com, and other companies were expanding, Huobi was closing down operations in a number of regions. In perspective, there is no doubt that the cryptocurrency sector has grown. Governments have been attempting to accommodate cryptocurrency businesses as the entire world is moving toward the crypto sector. Exchanges have been looking for permits to run legally all over the world.
The limitation schedule of New Zealand user accounts for derivative trading was released by Huobi earlier today. This stated that from the following week, the cryptocurrency exchange would stop offering derivatives trading services in New Zealand. As of the following week, the Seychelles-based cryptocurrency exchange would no longer offer margin trading services, options, or ETPs due to “local compliance restrictions.”
The provision of services for coin-margined futures, coin-margined swaps, Tether [USDT]-margined contracts, options, and any exchange-traded products [ETP] to consumers residing in New Zealand has been suspended, according to the crypto exchange. These users wouldn’t be able to use these features beginning on August 23.
Note that the firm made the decision to enter New Zealand in June 2022. However, New Zealand would be subject to “limited jurisdiction” starting the following week on the aforementioned day.
The exchange stated,
“Underpinning Huobi Global’s commitment to local compliance policies, we will be including New Zealand as a restricted jurisdiction in respect of trading in derivatives, and restrict New Zealand user accounts for derivatives trading in an orderly manner while ensuring the safety of user assets.”
Huobi under distress?
Not the first area to be included in the restricted area is New Zealand. It is unlawful for residents of 11 countries, including the US, Singapore, Iran, Canada, and Japan, to use Huobi’s services. After a dispute with the regulators not too long ago, the Seychelles-based crypto exchange left Thailand’s borders.
Only last week did speculations regarding Huobi Group founder Leon Li selling the majority of his company stock start to circulate. The neighbourhood guessed that the cryptocurrency exchange would be in jeopardy given this downward tendency.