The Suspension of Derivatives Trading
In an unexpected turn of events, Huobi Global has announced the suspension of derivatives trading for users in New Zealand. This change took shape as part of their commitment to adhering to local regulations, leaving many crypto traders wondering about their next steps.
What Does This Mean for Kiwis?
Effective August 23rd, New Zealand users will be temporarily cut off from some tantalizing trading options. This includes:
- Coin-margined futures
- Swaps
- Tether (USDT)-margined contracts
- Options
- Exchange-traded products
Users have been granted a small grace period to close any active positions, but not before the effective date. So, if you were planning to ride the crypto wave, it’s time to rethink your strategy!
Huobi’s Stance on Compliance
Huobi Group did not shy away from addressing Cointelegraph, reiterating their dedication to local laws. Their mantra seems to echo that compliance is king, and without it, no new products or services will see the light of day in any jurisdiction. It sounds formal, but in crypto, that’s the name of the game!
The Expanding List of Restricted Countries
As it stands, New Zealand is just one of many locations where Huobi has put up trade restrictions. In fact, it joins the ranks of countries like the United States, Canada, and Japan, which are now out of the loop. Users in mainland China, Taiwan, and the UK also find themselves unable to engage in derivatives trading.
Recent Developments and Future Moves
Just when you thought the news couldn’t get more exciting, Huobi’s co-founder Leon Li is reportedly in talks to sell a majority stake in the company, which is valued at over $1 billion. Founded back in 2013, Huobi boasts a hefty trading volume exceeding $1 billion daily, making it a heavyweight in the exchange arena.
Despite the hiccup in New Zealand, Huobi seems to be looking towards the future. Recently, they snagged clearance from Australian regulators to operate as an exchange provider. Plus, they nabbed a Money Services Business license in the U.S. through a subsidiary. Sounds like they’re not just wringing their hands over New Zealand!
A $1 Billion Investment Initiative
And if all that wasn’t enough, brace yourselves! Huobi is launching a robust $1 billion investment initiative targeted primarily at decentralized finance and Web3 expansion. If that isn’t a statement of intent, I don’t know what is!
