Seychelles-based cryptocurrency exchange Huobi has reportedly temporarily put an end to trading for new customers in some countries, raising questions about the regulatory scrutiny facing cryptocurrencies.
Bitcoin as the leading cryptocurrency exchange is also reducing its services in mainland China amid fears of growing regulatory scrutiny.
According to Bloomberg, Huobi is limiting these services in a handful of jurisdictions but didn’t specify which countries would be affected. There was also no word on why the temporary suspension is being implemented, though it could be tied to perceived regulatory uncertainty in China.
The exchange is also reportedly scaling back its miner hosting services in China after regulators in the country reaffairm their plan to crack down on cryptocurrency trading activities. But as Cointelegraph reported, China has repeatedly reiterated plans to control the domestic cryptocurrency market and its recent comments do not represent a material change in policy.
Huobi was eyeing expansion in Hong Kong earlier this year after receiving a new regulatory clearing from the region’s securities regulator, possibly paving the way for a new cryptocurrency asset management portfolio. The company secured “Type 4” and “Type 9” licenses from the Hong Kong Securities and Futures Commission in July 2020.
Huobi Global was the third-largest cryptocurrency exchange by volume on Sunday, processing $7.3 billion worth of transactions, according to Messari data.
Like other exchanges, Huobi has seen a surge in sell orders over the past week as FUD-driven headlines continue to grip the market. The appearance of a coordinated selloff and retail capitulation has shaved more than $1 trillion off of collective crypto values in the past ten days.