Huobi; a cryptocurrency exchange platform, has denied its Chinese clientele community services in crypto derivatives transactions. This is in response to the crypto clampdown by Chinese authorities. Huobi has modified its user agreement policy, hence prohibiting derivatives trading to some of its clients. The modified version of the user agreement listed some countries which the crypto firm prohibited from trading on crypto derivatives with China making the list.
The latest proscription is in addition to the outstanding embargo placed on some regions like Hong kong , Japan et cetera from making use of its platform. Huobi gave out stern warnings, declaring that customers who do not keep to their rules would likely have their accounts terminated.
The firm’s proscription on crypto derivatives trading as regards their Chinese clients is probably linked to the cryptocurrencies clampdown from the government of China. In the beginning of June, the exchange forum disallowed new customers from trading crypto derivatives and at the same time effected a decrement in the maximum leverage that can be permitted, bringing it down from 125x to below 5x.
Chinese powers that be has in the past weeks made the country unbearable for the cryptocurrency industry. The mining sector was neither spared as about 90% Bitcoin mining firms have closed down in the country. Some of these affected mining firms have relocated to other countries. With the current cross border movement, the mining hash rate may come down in the coming weeks as most of these firms will not be online.
With the latest development from Huobi, other crypto exchange platforms like Binance may likely enjoy more patronage. The crypto firm Binance however has recently been undergoing severe scrutiny from supervisory bodies. In the past week, the crypto firm received several letters from supervisory bodies of different countries.
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