Two months after receiving approval from New Zealand’s regulatory authorities for registration, the world’s leading cryptocurrency exchange platform, Huobi, will stop providing its derivatives trading services to users in the nation.
Huobi shuts doors for New Zealand users
Huobi said on August 16, 2022, that as of August 23, 2022, users in New Zealand would no longer be able to access its derivatives trading services.
Huobi claims that its actions were motivated by “commitment to local compliance policies.” As a result, users who are impacted by this change won’t be able to use features like coin-margined futures, options, exchange-traded products (ETPs), coin-margined swaps, and USDT-margined contracts.
The crypto exchange also announced that it would change its user agreement to add New Zealand as a “restricted jurisdiction,” permitting users in the nation to close out their positions starting on August 23, and further disallowing them from starting new derivatives positions on the above said date.
The most recent development occurred after Huobi registered on the Financial Services Provider Register (FSPR) of New Zealand in June.
The company was permitted to “operate a regulated foreign currency exchange and money or value transfer services in New Zealand, which allows crypto OTC trading services” thanks to its registration with the FSPR.
The founder of Huobi, Leon Li, is seeking to sell his stake in the company for close to $3 billion, as previously reported by TheCoinRise.
The likes of Justin Sun and Sam Bankman-Fried are among the rumored cryptocurrency power players that are interested in purchasing.
Despite the recent difficulties and the major crackdown by China, Huobi is determined to expand its operations around the world. A few weeks back, the exchange hinted at its plans to offer over-the-counter (OTC) services after registering with the Australian Transaction Reports and Analysis Centre (AUSTRAC) to operate as a digital currency service provider in the region.