Cryptocurrency exchange Huobi Global announced the suspension of derivatives trading in New Zealand. Huobi’s statement said the new restrictions against derivative offerings are in light of compliance with local regulations.
New Zealand users will no longer have access to derivatives trading services, which include currency margined futures and swaps, USDT margined contracts, options, and exchange-traded products (ETPs).
The new restrictions will take effect on August 23, 2022. On the same day, Huobi Global will stop accepting users with KYC from New Zealand, along with IP addresses from the area. Users who wish to close active positions will only be able to do so from the effective date of the restrictions.
Cointelegraph has contacted Huobi Global for comment on the development.
Huobi has a growing list of restricted countries, including 11 jurisdictions that cannot access any of its services. Places like the United States, Canada, and Japan fall into this category. At the same time, places like mainland China, Taiwan and the UK cannot access derivatives trading.
This comes shortly after it was reported that Huobi co-founder Leon Li wanted to sell a majority stake in the company. The stake is worth more than $1 billion. Founded in 2013, Huobi Global handles more than $1 billion in daily trading volume.
Despite this development in New Zealand, the company has recently made moves towards expanding its offerings in other regions. In early August, Huobi received the green light from regulators in Australia, New Zealand’s neighbor, to be an exchange provider in the country.
In United States, Huobi obtained its FinCEN license last July. A subsidiary of the company called HBIT received its Money Services Business (MSB) license from the United States Financial Crimes Enforcement Network (FinCEN).
All of these developments come as Huobi has launched a $1 billion investment initiative focused on decentralized finance (DeFi) and the expansion of Web3.
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