Business & Finance

Crypto Exchange Huobi to Freeze U.S. User’s Accounts by Mid November

Huobi, the largest exchange platform in China and one of the major exchanges of the crypto sphere globally, just announced that it will be cutting off its user base from the United States.

The United States of America has not proved to be an encouraging playing field for Huobi. The constant friction between the regulators and the crypto sphere has affected the operation of several cryptocurrency exchange platforms in the country; thus causing a rift between U.S. users and international exchange platforms.

The Singapore-based cryptocurrency exchange has offices spread out in Hong Kong, Japan and the United States, all the while serving millions of users in more than 130 countries around the world in line with laws and regulations. However, according to the blog post by Huobi on November 3rd, it will not be entertaining any customers from the U.S, later this month.

READ ALSO: Binance Rumored to be Warming its Way into “Anti-Crypto” China

The blog post stated that according to the laws and regulations of the United States with regards to crypto assets, the platform’s user agreement expressly prohibits users in the U.S. from using their trading platform. Because of this, Huobi has been working on gradually disabling the accounts of its customers in the U.S. in order to “prevent any further trading or transferring.”

Since Huobi is a stickler for laws, it is giving its customers a grace period that will last until next week, November 13, after which the platform will go ahead and freeze all the accounts belonging to U.S. users. Before that the deadline, the exchange will be making refunds in either Bitcoin (BTC) or Tether (USDT). The blog post further instructed all the affected customers to return their borrowed funds in margin trading and withdraw any remaining cryptocurrencies from their accounts.

The main reason for Huobi packing shop from America, according to its announcement, is the unfriendly regulatory environment for cryptocurrencies in the country. However, there could be another reason for freezing out U.S. customers, the HBUS.

The San Francisco-based HBUS operates the Huobi US platform as a Federal Money Services Business. It is likely that Huobi is nudging its users towards “exclusive U.S. strategic partner,” that is solely dedicated to serving the U.S. clientele. However, very similar to the recently launched Binance.US, HBUS runs and operates separately from the larger exchange.

READ ALSO: Belgian Regulator FSMA Adds 9 Websites to its Crypto Scam List

Huobi is all geared up to give a tough competition to the coveted Binance, as it continues to explore global markets. Only earlier in September Huobi expanded to Argentina with its plans to add support for a fiat-to-cryptocurrency gateway. Moreover in October, the platform announced that it will launch a fiat gateway for the Turkish lira by the end of this year.

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Abeer Anwaar

Abeer holds a Bachelors degree in Media studies and covers blockchain startups for BlockPublisher. An optimist, excels in the art of the written word and swears by the joy of all things sweet. Contact the editor at editor.startups@blockpublisher.com

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