Huobi, the Chinese-founded crypto exchange that is the largest in China, has released a list of countries that will be prohibited from trading on the platform.
The list of totally banned countries includes the US, Canada, Hong Kong and Japan.
In addition, some countries are not totally banned but are now restricted from using any derivative trading products on the Huobi platform, including China and the UK, as well as Iraq, Bangladesh, Bolivia and Ecuador. In these countries, spot trading on Huobi will still be permitted.
Huobi, China's largest exchange, updated its user agreement to prohibit users in China, the United Kingdom and other places from using derivatives to trade. pic.twitter.com/RhiwhJHANb
— Wu Blockchain (@WuBlockchain) June 28, 2021
Why ban derivative trading?
The news comes following a crackdown on cryptocurrency in China, as well as increasingly growing oversight on crypto exchanges from the Financial Conduct Authority (FCA) in the UK.
The UK regulator recently banned Bybit and gave a stark warning to Binance in an effort to protect what they see as vulnerable retail investors trading with risky financial instruments, such as margin trading, CFDs (contracts for difference) and leveraged trading.
In a recent statement to Coindesk, before the specifics of the ban were reported, Huobi said that it was introducing the measures “To protect the interests of investors, [due to recent dynamic changes in the market], a portion of services such as futures contracts, ETP [exchange-traded products] or other leveraged investment products are temporarily unavailable to new users from a few specified countries and regions”.