According to a report, the third-largest crypto firm, Huobi, has inhibited stocks for both present users and new ones due to the stringent regulations from the Chinese authorities. According to Colin Wu, a journalist, this action taken by the firm might push many investors to Binance for a greater and more advantageous transactions.
The Chinese reporter previously tweeted that the firm had lowered the highest acceptable market advantage from a hundred and twenty-five times to below five times for current investors. Also, new investors that are China-based were not permitted to participate in stock transactions on the platform.
It is still not clear if this move by the firm will persist for so long or whether it will make Chinese investors to move to other companies. Colin noted that most investors that can’t handle deals that are greatly leveraged will move to Binance, but that is if it will not be the next victim of the government’s strict regulations. He alleged that majority of the users were already making use of the Binance, Huobi, and OKEx accounts.
Chinese traders are facing challenges from regulators that are evidently strict with the enforcement of regulatory rules on digital products since the beginning of 2021. Huobi mall disclosed earlier this month of its plan to stop mining activities in China, as a result of the prohibition against crypto transactions by the 3 main trade organizations in the country. Regulators have as well made policies to enforce strict and rigorous punishment on companies mining cryptocurrency in the district of Inner Mongolia.
Based on CoinMarketCap report, Huobi Global is presently rated as the 3rd biggest firm after Coinbase and Binance. As of the time of reporting, its business capacity is above eleven billion dollars for the past twenty-four hours.
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