Huobi exchange has stated that users in China will no longer be able to trade crypto derivatives on the platform
Huobi, a cryptocurrency exchange platform, has revised its user agreement contract to prohibit consumers in China from trading crypto derivatives.
The restriction on crypto derivatives trading, according to the Huobi Global website’s amended user agreement section, applies to users in China, Taiwan, Israel, and Iraq.
Other countries that are confined to retail customers include the United Kingdom, Bolivia, Bangladesh, and Ecuador, to name a few.
The crypto derivatives trading restriction comes on top of the company’s long-standing bans on its platform in places like Hong Kong, Japan, Cuba, Iran, North Korea, Sudan, Canada, and the United States, to name a few.
Users who break these limits risk losing their accounts, according to the company.
Huobi’s restriction on crypto derivatives trading for Chinese consumers is most likely related to Beijing’s renewed crackdown on cryptocurrency.
Earlier this month, the site barred new users from trading crypto derivatives in the country, as well as lowering the permitted leverage from 125x to less than 5x.
In recent weeks, Chinese authorities have increased the ante, even targeting the mining industry, forcing over 90% of the country’s Bitcoin (BTC) miners to shut down.
With a major amount of the network’s hash power unavailable, at least temporarily, Bitcoin’s hash rate is projected to suffer its biggest difficulty drop, with a significant portion of the network’s hash power missing.
Huobi’s prohibition is also likely to limit Chinese crypto derivatives traders’ options. For those wishing to trade highly leveraged bitcoin contracts, platforms like Binance and OKEx may be the next stop.
