Huobi bans Chinese residents from accessing trade derivatives
News

Huobi bans Chinese residents from accessing trade derivatives

Saudu Clement
Saudu Clement

Amid China’s crackdown on Bitcoin mining operations, crypto exchange Huobi has begun restricting access to some of its services by Chinese residents. According to the exchange’s updated User Agreement, users in China will no longer be allowed to trade derivatives.

The exchange recently updated its User Agreement, and China has been added to its list of regions prohibited from using its derivatives trading services. Chinese residents will still be able to access the platform and use it for spot trading, but it is unclear how long this will last following China’s continued crackdown on cryptocurrencies.

The latest development comes a few days after Huobi decreased the amount of leverage available to Chinese users. The available leverage was dropped from 125X to 5X on regulatory grounds. Furthermore, new China-based users will not be able to access derivatives.

As reported by BTC PEERS, China has been persistent with its crackdown on cryptocurrency over the past few months. Several mining facilities have been forced to shut down after authorities ordered electricity companies to cut supply to mining farms. Since the beginning of China’s latest anti-crypto move, Bitcoin’s hash rate has crashed by nearly 50% to 2019 levels.