Huobi Global crypto exchange has suspended all forms of crypto derivative trading services for users in New Zealand.
Bitcoin exchange The suspension of derivatives trading in New Zealand was announced by Huobi Global. According to a statement from Huobi, the additional limitations on derivative offerings are necessary to ensure local laws are being followed.
Derivative trading services, including coin-margined futures and swaps, USDT-margined contracts, options, and exchange-traded products (ETPs), will no longer be available to users in New Zealand.
On August 23, 2022, the new restrictions will go into force. Huobi Global will stop accepting users with New Zealand KYC and local IP addresses on the same day. Users may only close out open positions as of the implementation date of the restrictions and after.
There are 11 jurisdictions on Huobi’s list of prohibited countries, which is always growing. This category includes nations like the United States, Canada, and Japan. At the same time, countries including the United Kingdom, Taiwan, and mainland China cannot access derivative trading.
This comes shortly after news broke that Huobi co-founder Leon Li wanted to sell the company’s majority ownership. The share is worth more than $1 billion. Huobi Global, founded in 2013, conducts daily trades worth more than $1 billion.
Despite this New Zealand-specific development, the corporation has recently taken steps to broaden its product offerings. Huobi got approval to operate as an exchange provider in Australia, a nation that borders New Zealand, at the beginning of August.
Huobi obtained its FinCEN license in the US in July of last year. The US Financial Crimes Enforcement Network issued a Money Services Business (MSB) license to a firm subsidiary known as HBIT (FinCEN).
These changes occur at the same time the exchange unveiled a $1 billion investment project with a focus on Web3 development and decentralized finance (DeFi).