Biggest Chinese crypto trader, Huobi, shuts down futures and all derivatives trading in China today as planned
Colin Wu, a Chinese journalist and blogger that covers all things to do with blockchain and crypto, has tweeted that, in accordance with announcements made earlier this fall, Huobi will cease to trade all cryptocurrency futures and other derivatives products for users in mainland China.
According to previous announcements, Huobi, China's largest exchange, will today completely shut down futures, contracts and other derivatives functions for all Chinese users. https://t.co/TNx4CvrzJ7— Wu Blockchain (@WuBlockchain) October 29, 2021
Huobi shutting down derivatives in China
Previously, Huobi was the first exchange to announce that it decided to withdraw from mainland China due to the continuation of the cryptocurrency ban imposed by the Chinese government.
Other crypto trading platforms and crypto companies, including crypto mining pools, followed Huobi’s example. This list includes BTC.com and Bitmain. Coinex exchange is withdrawing from China and Renrenbit exchange, set up by the “OTC king” of China, Zhao Dong, is closing down its business completely.
Binance has joined Huobi as well.
Possible reasons for Chinese crypto ban from various influencers
The wealthiest man in the word, centibillionaire Elon Musk, believes that cryptocurrency is threatening the dominance of the Chinese Communist Party in the country; hence, the continuation of the crypto ban that began as early as 2017, when the government prohibited ICOs.
Author of the bestselling “Rich Dad, Poor Dad” book on financial self-literacy, investor Robert Kiyosaki, believes that the crackdown on crypto and crypto miners is due to China’s plans to launch its own CBDC—digital Chinese yuan (DCEP)—soon, and the government is simply making way for it by wiping out any competition.
China seeks to tax crypto exchanges
Curiously, despite announcing that all crypto transactions are outside of the law, the authorities admit that the ban does not yet have a full legal basis to it. While seeking ways to implement this into the local legislation system, Bitcoin remains legal to own as property.
Besides, China now wants to tax crypto exchanges that are providing services to Chinese users, even those based outside of China.
Huobi Crypto Exchange Will Offer a Lucky Winner a Ticket to Space
- The Seychelles-based Huobi is offering a ticket to space to its users.
- Today, the company advertisement was shown in Japan.
Huobi, the world’s third-largest cryptocurrency exchange by trading volume, is celebrating its 8th birthday by sending a lucky user to space. Note that the company announced a series of events as part of its 8th-anniversary celebrations, which include giveaway promotions and a space travel ticket.
Today, the company advertisement was shown in Japan and the crypto exchange proudly shared the image via its official Twitter account. According to the crypto exchange, the contest will offer one lucky winner an experience to truly travel into space.
Consequently, the firm invites its users to register for the event as it confirmed that all Huobi Global users across the world are eligible to participate in the free contest. But, users must adhere to the terms and conditions as there are certain limitations. Following this, Jeff Mei, director of global strategy at Huobi Group also said,
There are still health requirements that have to be passed to go to space, but these details will be revealed at a later point.
However, the company didn’t give any details regarding the space agency that will provide this space trip for Huobi. Moreover, this got people wondering if it will happen via a private company like Jeff Bezos’ Blue Origin or Elon Musk’s SpaceX or any other firm.
Huobi Token Sees Strong Performance Followed by Loss on Red Day for Crypto Market
Crypto exchange Huobi Global’s own cryptocurrency huobi token (HT) rose in an otherwise red crypto market today, before falling along with the rest of the market. The changes follow news that Huobi is moving its spot trading services to Gibraltar.
At 10:00 UTC on Tuesday, huobi token was up 1% over the past 24 hours, trading at a price of USD 10.54. Despite being only a minor rise, the gain was enough to position HT as today’s third-best performer among the top 100 coins in the crypto market, on a day when most other coins fell sharply.
45 minutes later, at 10:45 UTC, the early gains had turned to a loss for HT, with the token trading down 3.6% over the past 24 hours as of press time.
Although a relatively strong performer today, the price of huobi token has failed to reach its high levels from early September this year, and still remains far below its all-time high from May of nearly USD 40.
The Huobi exchange, which originated in Mainland China and has maintained a strong presence there ever since, has seen a large portion of its key market disappear after the Chinese government reiterated its ban on crypto in September this year. Among other things, the government said that exchanges that target Chinese customers – even if it is based overseas – could face punishment.
Since the renewed Chinese crackdown on September 24, HT has now fallen by about 18%, price data from TradingView shows.
Move to Gibraltar
With the latest Chinese crackdown as a backdrop, Huobi last week also announced its intention to move its spot trading services to Gibraltar, a British Overseas Territory located on the southern tip of Spain.
According to an announcement from Huobi, the exchange has received approval from the Gibraltar Financial Services Commission to set up its spot trading activities in the territory. The trading will take place under a locally registered company that, according to Huobi, is a “fully licensed and regulated DLT service provider” in Gibraltar.
Shortly after Huobi’s decision to set up shop in Gibraltar, news also broke that Block.one, the development firm behind the EOS protocol, has decided to base its crypto exchange in Gibraltar.
According to an announcement from the firm dated November 9, the exchange, named Bullish, has received the same distributed ledger technology (DLT) license from Gibraltar’s regulator as Huobi.
Meanwhile, and shortly after Huobi’s move to Gibraltar was announced, the exchange also made public a decision to expel Singapore-based clients from its platform. The decision represents yet another sign of Huobi’s difficulties with Asian regulators, but is not surprising given similar moves from exchanges such as Binance in the past.
According to the Huobi, accounts of users residing in Singapore will be closed on March 31, 2022, with services expected to be gradually phased out before that.
Crypto Trading Giant Huobi Moves from China to Gibraltar
Trading giant Huobi moves away from China, which became tyrannical for crypto-related companies.
Cryptocurrency trading company Huobi, which was originally founded in 2013, is now moving its spot-trading operation to Gibraltar in order to avoid the crackdown on the industry currently taking place in mainland China, according to Bloomberg.
According to Gibraltar Financial Services, Huobi received approval from the regulator, which will now start the process of migrating the company’s operations from China to Gibraltar. After the process takes place, Huobi will be able to once again offer spot-trading services directly through the Huobi Gibraltar company, which will be regulated by the GFSC.
Huobi Group co-founder Du Jun said in the statement that the cryptocurrency industry is constantly growing, and the company needs to align its business in accordance with the challenges that appear in its way.
Previously, the company’s shareholders decided to move their operations from the country back in September. Due to actions by the Chinese government, cryptocurrency-related companies had no other choice but to move or conclude all of their operations in the country. Officials have banned all crypto-related services in the country, including routine transactions.
Generally, Gibraltar has been acting as a haven for companies dealing with digital assets or cryptocurrency trading due to the friendly regulatory environment. Small countries like Gibraltar, Estonia and El Salvador quite often attract companies like Huobi to function under their countries’ legislative oversight in exchange for a favorable environment and relatively low taxes.