The crypto exchange platform Huobi has updated its user agreement document banning crypto derivatives trading for customers in China.
According to the updated User Agreement section on Huobi Global’s website, the crypto derivatives trading ban will apply to users in jurisdictions such as China, Taiwan, Israel and Iraq. Other prohibited countries are the UK – restricted to private customers – as well as Bolivia, Bangladesh and Ecuador, to name a few.
The trading ban on crypto derivatives also applies in addition to the long-standing bans on using its platform in Hong Kong, Japan, Cuba, Iran, North Korea, Sudan, Canada and the United States, among others. The platform warned that if users violate these restrictions, they run the risk of losing their accounts.
Huobi’s ban on Chinese users’ trading in crypto derivatives is likely due to renewed crackdowns on cryptocurrencies by Beijing authorities. In early June, the platform stopped new users in the country from trading crypto derivatives while reducing the leverage allowed from 125x to less than 5x.
Chinese authorities have been ramping up the stakes in the past few weeks and even targeting the mining sector as nearly 90% of Bitcoin (BTC) miners in the country are forced to close.
Some companies have started to shift overseas, with Bitcoin’s hash rate likely to drop their greatest difficulty as a significant portion of the network’s hash power is offline, at least temporarily.
Connected: The Huobi crypto exchange has reportedly stopped trading derivatives for new users
The Huobi ban is also likely to reduce the options available to Chinese crypto derivatives traders. Platforms like Binance and OKEx could likely be the next stop for trading heavily leveraged cryptocurrency contracts.
For its part, Binance was also subject to increased regulatory scrutiny. Just last week, the stock market giant received notices from regulators in the UK, Japan and Ontario, Canada.