The cryptocurrency trading platform Huobi has updated its user agreement documents to prohibit Chinese customers from trading crypto derivatives.
According to the updated User Agreement In the Huobi Global website, the ban on crypto derivatives trading covers users in jurisdictions such as China, Taiwan, Israel, and Iraq. Other banned countries include the United Kingdom-limited to retail customers-as well as Bolivia, Bangladesh and Ecuador, to name a few.
The ban on crypto derivatives trading is also a long-term ban on the use of its platform in Hong Kong, Japan, Cuba, Iran, North Korea, Sudan, Canada, and the United States. The platform warns that users who violate these restrictions may lose their accounts.
Huobi’s prohibition of Chinese users from trading in crypto derivatives may be due to another blow by the Beijing authorities on cryptocurrencies. In early June, the platform blocked new users in the country from trading crypto derivatives, and at the same time Reduce the allowable leverage from 125 times to less than 5 times.
Some companies have already started Emigrate overseas Bitcoin’s hash rate is expected to experience the greatest difficulty drop, as a large part of the network’s hash power is offline at least temporarily.
The Huobi ban may also narrow the choice of Chinese crypto derivatives traders. Platforms such as Binance and OKEx may be the next ports of call seeking to trade highly leveraged cryptocurrency contracts.