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Huobi closes crypto derivatives in mainland China

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Major cryptocurrency exchange Huobi has finally curtailed trading in futures and other cryptocurrencies in mainland China. The move is part of the company’s larger plan to reduce operations in the country.

As part of a strategy “in accordance with local regulatory requirements” to suspend operations in China. Huobi announced on its website earlier this month that it will settle all futures, contracts, and other derivatives activity for all Chinese consumers today.

Due to the Chinese crypto crackdown, Huobi was the first exchange to declare its withdrawal from mainland China. Thus, the largest cryptocurrency exchange in the country outlined a plan for Chinese investors after halting crypto trading on September 27. Huobi Group co-founder Du Jun stated that as part of its social duty, the crypto exchange aims to safeguard the safety of its consumers’ money before permanently shutting down by December 31, 2021.

Following Huobi’s lead

Other cryptocurrency-related platforms and businesses, such as crypto mining pools and mining equipment manufacturers, followed Huobi’s lead. Binance, BTC.com, and BeePool are among the companies on this list.

Chinese journalist Colin Wu noted that the balance of Huobi Bitcoin wallets continues to decline.

Over the past 24 hours, it has decreased by 3.34%, to 77,992 BTC (~$4.76 billion at the current exchange rate). At the same time, on the morning of October 29, 10,072 BTC (~$614.45 million) were received on the OKEx exchange.

Decision to leave China before the tightening of regulation

Earlier in June 2021, Huobi blocked Chinese and British investors from trading cryptocurrencies. This happened just a day after the country’s supervisors announced a new crackdown on Bitcoin mining, including trading activities.

Later in September, the platform stopped registering new users in mainland China after another wave of repression against the cryptocurrency industry. A similar decision was made by the Bitcoin exchange Binance.

Recall that Huobi decided to leave China even before Beijing tightened regulation of the digital asset market. And also ruled out the possibility of further work in the country, according to Bloomberg.

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