Crypto exchange Huobi Global has suspended derivatives trading for its New Zealand users. According to the company, the new restrictions are in line with its compliance with regulatory authorities in the region.
This means that the exchange’s users in New Zealand will no longer have access to derivatives trading services such as options and exchange-traded products, Tether-margined contracts, and coin-margined futures and swaps.
The Restriction Will Start From August 4
The press release indicated that the new restrictions will begin on August 23. Also, Huobi will stop accepting users with New Zealand IP addresses and Know Your Customer-verification location from the area. Users are only allowed to close their active positions on the platform when the restriction date begins.
This will add to an increasing list of restricted countries as the crypto exchange try to maintain compliance with regulatory bodies. Currency users from 11 jurisdictions are not able to have access to the company’s exchange platform. These include Japan, Canada, and the United States. Huobi has also blocked derivatives trading for users in the UK, Taiwan, and mainland China.
Your capital is at risk.
The latest restriction on New Zealand is coming after it was reported that Huobi co-founder Leon Li wants to sell a majority stake in the company.
Huobi was launched in 2013 and has grown to become one of the leading global crypto exchanges. The firm reported that it handles over $1 billion worth of trading a day.
Huobi Continues To Expand Market Despite New Zealand Development
Huobi’s moves over the past few years show that the firm wants to keep expanding its operations to several regions. Earlier this month, Huobi was approved by Australian regulators to become an exchange provider.
Last month, the exchange secured a Monetary Services Business license from the US Financial Crimes Enforcement Network. The license was secured via a subsidiary of a firm called HBIT. This comes after Huobi rolled out a $1 billion investment initiative with a focus on Web3 and decentralized finance expansion. The company has also started several other initiatives and partnerships to expand its operations and service offerings across several regions.
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Source: https://insidebitcoins.com/news/huobi-stops-derivatives-trading-for-new-zealand-users