Huobi Bans Chinese-Based Users From Trading on App
China was added to the list of unlawful jurisdictions for its derivatives trading service, but its users can still access the exchange platform and spot trade, according to the updated fine print on June 26.
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key takeaways
- The use of derivative trading services provided by Huobi’s website is prohibited for anyone in mainland China, Taiwan, Israel, Iraq, Bangladesh, Bolivia, Ecuador, Kyrgyzstan, Sevastopol and the United Kingdom for retail users only.
- This update follows last week’s news that Huobi’s Twitter account vanished but reappeared later in the week.
Huobi, a bitcoin and ethereum trading platform, is no longer permitting Chinese-based users to trade derivatives on its website, according to its updated user agreement notice.
China was added to the list of unlawful jurisdictions for its derivatives trading service, but its users can still access the exchange platform and spot trade, according to the updated fine print on June 26.
“The Company may suspend or terminate your account or use of the Service, or the processing of any digital asset transaction, at any time if it determines in its sole discretion that you have violated this Agreement or that its provision or your use of the Service in your jurisdiction is unlawful,” it said.
Use of services is prohibited for people in the United States, Canada, Hong Kong, Japan, Cuba, Iran, North Korea, Sudan, Syria, Venezuela and Crimea, it said. Meanwhile, the use of derivative trading services provided by Huobi’s website is prohibited for anyone in mainland China, Taiwan, Israel, Iraq, Bangladesh, Bolivia, Ecuador, Kyrgyzstan, Sevastopol and the United Kingdom for retail users only, the company said.
The list of countries or regions under prohibited restrictions can change due to new products or policies, according to the user agreement.
This update follows last week’s news that Huobi’s Twitter account vanished but reappeared later in the week. After the incident, the company tweeted a statement that “everything is back to normal,” and added, “currently there are many rumors floating out there in the world of crypto. Huobi assures that we are operating under fully legal and compliant standards to best protect users and your assets.”
When the account disappeared it led many to think that Seychelles-incorporated, but Hong Kong-listed Huobi had been caught in the crosshairs of the territory’s regulators, Blockworks previously reported.
In general, Hong Kong and Beijing have been cracking down on crypto. Hong Kong restricts exchanges to professional investors only — Huobi opens its doors to everyone — and while the firm is Seychelles registered, it is publicly listed on the Hong Kong exchange.
Separately, earlier this month, securities regulators in Thailand, as part of the country’s broader crackdown on crypto offerings with “no clear objectives or substance”, ordered Huobi to cease operations until it cleans up its organizational structure and reconfigures its offerings to become compliant with local regulatory standards, Blockworks previously reported.
