Huobi Global, a significant crypto exchange with headquarters in the Seychelles, made the announcement on August 16 that it will no longer provide futures trading services to customers in New Zealand from August 23. Houbi announced on its website that it will stop providing exchange-traded products (ETPs), coin-margined futures, coin-margined swaps, Tether (USDT)-margin contracts, and options to crypto users in New Zealand.
The exchange remarked that it will revise its “user agreement” on that specific day to add New Zealand as a “restricted jurisdiction” with regard to derivatives trading. According to Houbi, “New Zealand user accounts for derivatives trading in an orderly way while maintaining the safety of user assets should be restricted.”
Huobi does not provide derivatives goods to about 12 jurisdictions, including the United Kingdom and mainland China, in accordance with its policy on restricted territories. Additionally, crypto users from 11 jurisdictions, including the U.S., Canada, Japan, Iran, and Singapore, are not permitted to utilise “all services” on the exchange. It’s unclear if Huobi will keep offering consumers in New Zealand additional trading options.
Huobi expanded its service after receiving ist first acquisition license in New Zealand in June. Huobi took the first step toward establishing its crypto trading operation in New Zealand with the FSPR registration. To provide trading services to residents of New Zealand, all crypto exchanges must register with the country.
The registration allowed HBGL New Zealand Limited, a local affiliate of Huobi, to provide regulated foreign exchange, asset management, and money transfer services in New Zealand.
The two most recent regulatory victories for Huobi occurred not long after the company’s affiliate firm in Thailand was shut down permanently in mid-June after having its operating licence revoked by the Thai Securities and Exchanges Commission. It indicates that Huobi has not complied with the necessary standards for providing services in the following jurisdictions.
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