Huobi bans trading in crypto derivatives for users in China
Crypto exchange platform Huobi has updated its user agreement document, banning trading in crypto derivatives for customers in China.
According to the update User agreement section of the Huobi Global website, the ban on trading in crypto derivatives covers users in jurisdictions such as China, Taiwan, Israel, and Iraq. Other banned countries include the UK – only for retail customers – as well as Bolivia, Bangladesh and Ecuador, to name a few.
The ban on trading in crypto derivatives also adds to long-standing bans on using its platform in places such as Hong Kong, Japan, Cuba, Iran, North Korea, Sudan, Canada and the United States, among others. The platform warned that users who violate these restrictions risk losing their accounts.
Huobi’s ban on trading in crypto derivatives for Chinese users is likely due to the renewed crackdown on cryptocurrencies by authorities in Beijing. Earlier in June, the platform barred new users in the country from trading crypto derivatives while reducing the leverage allowed from 125x to less than 5x.
Chinese authorities have raised the bar in recent weeks, even targeting the mining sector with nearly 90% of Bitcoin (BTC) miners in the country forced to shut down.
As some companies have started to move overseas, Bitcoin’s hash rate is expected to see its biggest drop in difficulty with a significant portion of the hash power of the network offline, at least temporarily.
Related: Huobi crypto exchange reportedly stopped letting new users trade derivatives
Huobi’s ban also likely narrows the options available to Chinese crypto derivatives traders. Platforms like Binance and OKEx can likely be the next port of call for looking to trade high leverage cryptocurrency contracts.
Binance, for its part, has also come under increased regulatory scrutiny. Just last week, the stock exchange giant received notices from regulators in the UK, Japan and Ontario, Canada.