The crypto industry has certainly attained a boost. With the entire globe inclined towards the crypto market, governments have been trying to accommodate crypto businesses. Exchanges have been on a quest for licenses to operate legally across the world. Amidst this, Huobi Global seemed to be falling into a lot of trouble lately. While Binance, Crypto.com, and others were on an expansion spree, Huobi was shutting shop at various locations.
Earlier today, Huobi shared a notice titled “Restriction Schedule of New Zealand User Accounts for Derivative Trading.” According to this, the crypto exchange would discontinue its derivatives trading services in New Zealand starting next week.
Huobi Global affirmed that services coin-margined futures, coin-margined swaps, Tether [USDT]-margined contracts, options as well as any exchange-traded products [ETP] to New Zealand-based users would be suspended. Starting from the 23rd of August these users wouldn’t be allowed to access these functions.
It should be noted that Huobi decided to venture into New Zealand in June 2022. However, next week, on the date mentioned above, New Zealand would fall under the “restricted jurisdiction.”
The exchange wrote,
“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.”
Is Huobi swimming in troubled waters?
New Zealand isn’t the first region to fall under the restricted area. Citizens of 11 jurisdictions including Canada, Japan, Singapore, Iran as well as the US are banned from employing services offered by Huobi. Not too long ago Huobi exited the shores of Thailand after its fallout with the regulators.
Just last week, rumors about the founder of Huobi Group Leon Li selling of majority of his stake at the firm began surfacing. With this downtrend, the community speculated that the crypto exchange could be in trouble.