Huobi Global Cuts Off US Traders from November 13
US traders will have to go through Huobi Global’s local partner to access the new portfolio of crypto pairings.
Huobi Global is the next exchange to lock out US customers and transform its US-based business. From November 13, US-based accounts on Huobi Global will be locked, breaking the possibility for arbitrage and making crypto trading a more regional affair.
Huobi Global follows the examples of Binance, Poloniex, Bittrex, and other exchanges, which are offering separate businesses for US and international customers. Stringent US regulations on customer tracking, as well as securities law, are discouraging exchanges from working with the US market.
“In line with the laws and regulations of the United States with respect to crypto assets, our User Agreement expressly prohibits users in the United States from using our platform. For that reason, the accounts of US users have been gradually disabled to prevent any further trading or transferring.”
“We will freeze all US user accounts from 13 November 2019 (GMT+8) onwards. We are sorry for any inconvenience resulting therefrom,” announced the Huobi Global team in a recent communication.
US traders are warned to close position, return borrowed funds, and start withdrawing assets.The new company that will take over, Huobi US, is a San Francisco based entity, and works as a partner to Huobi Global. The model is similar to Binance, where Binance US is not a subsidiary.
At the same time, other regions are rising with regulations friendlier to crypto trading. The European Union is rising as one such region, where companies more easily reach fully transparent legal status. Brokers like eToro, as well as exchanges Bitpanda and Bibox keep growing their regional European business, with easier access to handling fiat legally.
Following the news, Huobi Token (HT) remained almost without a change at $3.87. US-based trading has thinned out in comparison to crypto-based exchanges serving Asian traders and a global audience in other regions. Huobi Global reaches 130 countries, striving to keep up with all local regulations.
Huobi Global is among the largest exchanges, posting above $1 billion in daily volumes, and competing with OKEx and Binance.