Huobi Global phasing out derivatives trading in New Zealand

Getting your Trinity Audio player ready...

Digital assets exchange Huobi Global has announced that it is implementing a restriction on derivatives trading for its users in New Zealand. These include all coin-margined futures and swaps, Tether (USDT)-margined contracts, options, and exchange-traded products (ETPs). 

In a notice, Huobi outlined the schedule by which it will phase out the offerings, setting August 23 as the day it updates its user policy to include New Zealand as a restricted jurisdiction. From the date, it will cease the intake of users with New Zealand KYC and IP addresses and stop allowing New Zealanders to open new derivatives positions. 

The only derivatives operations allowed after the date is the closing of open positions. The exchange said this would be carried out orderly while ensuring the safety of user assets. Huobi explains that the move is in keeping with compliance with local regulations. 

“Regrettably, Huobi Global can no longer provide derivatives trading services for New Zealand-based users. We sincerely apologize for any inconvenience caused and thank you for your support,” the notice said. 

Huobi still making progress with regulatory compliance 

The restriction came just after the Seychelles-based exchange expanded into the New Zealand market in June. Apart from New Zealand, Huobi restricts derivatives trading in a total of 13 countries per its user agreement. These include China, Hong Kong, Taiwan, Israel, Spain, and the United Kingdom, among others. 

Similarly, users from the U.S., Canada, Japan, North Korea, Singapore, and six other countries are prohibited from using all the services of the exchange. The exchange is also in the process of ending all its operations in Thailand after failing to meet new registration requirements imposed by the Thai Securities and Exchange Commission (SEC). 

Meanwhile, Huobi Global has also succeeded in breaking into new markets as it advances with its global expansion push. It secured a license from the Australian Transaction Reports and Analysis Centre (AUSTRAC) to operate in Australia in July. It also received licenses from Dubai’s VARA and saw its license application become one of the few accepted by Hong Kong’s Securities and Futures Commission (SFC). 

In related news, Bloomberg reported earlier this month that the exchange’s founder Leon Li plans to sell a majority of his stake in the company for as much as $3 billion. Some interested buyers include Tron blockchain founder Justin Sun and FTX exchange founder Sam Bankman-Fried. 

Watch: BSV Global Blockchain Convention presentation, BSV for Retail Payments, Remittances & Rewards

https://www.youtube.com/watch?v=51btsCHPAq8&feature=youtu.be