Popular Seychelles-based crypto exchange, Huobi Global has decided to stop its offering of derivatives trading in New York. The exchange confirmed the development in its Tuesday blog post. According to Huobi, it plans to stop the offering by August 23.
Notably, this development means users in New Zealand will no longer enjoy crypto derivatives services from Huobi Global starting from the aforementioned date. As revealed, services such as coin-margined futures, coin-margined swaps, Tether(USDT)- margined contracts, options, and any exchange traded product(ETP) are also affected.
According to Huobi Global, the development comes barely months after it expanded its operation to the coast of New Zealand. Recall that the exchange expanded its operation to New Zealand last June. It became registered as one of the country’s financial service providers at the New Zealand Companies Office. Now, the exchange announced the plan to update its user agreement policy to restrict New Zealand users from accessing its derivative trading.
Notably, Huobi user agreement restricted only users from 11 countries from all its services. They include the U.S, Canada, Japan, Iran, Singapore, and a host of others. More so, Huobi restricted users from U.K, Mainland China, and others from its derivatives trading. Now, its latest decision means New Zealand will join the list of countries blocked from its derivatives offering.
Additionally, Huobi Global plans to ban all derivatives accounts belonging to New Zealand users. However, the exchange affirms its commitment to carrying out the operation without jeopardizing the safety of their assets.
Huobi Global secures entry into Australia amidst market struggles
In early August, the exchange secured a regulatory permission from Australian financial regulators. The permit now allow the exchange to function as a digital currency exchange provider in the country. Also, Huobi global obtained license from Australian Transaction Reports and Analysis Center (AUSTRAC) to provide digital assets services to local customers. The license is to aid the buying, selling, and trading of crypto products on the exchange by users. As reported, the exchange plans to avail “Over-the-counter” services in the country. According to Huobi Global CFO, Lily Zhang, security and compliance with local laws are the exchange’s topmost priorities.
Worth noting that its founder, Leon Li, recently announced plans to sell the majority of Huobi’s controlling share. Reportedly, it intends to sell for about $3 billion. Now, he is reported to be in talks with several investors to sell off almost 60% of the company. The move, as believed, manifested owing to the prevailing market conditions.