Cryptocurrency exchange giant Huobi will cease offering its derivatives trading services to New Zealand customers two months after the company obtained registration from the country’s regulators.
- In an announcement on Tuesday (August 16, 2022), Huobi said it would restrict users in New Zealand from accessing derivatives trading services starting from August 23, 2022.
- According to Huobi, its action was in “commitment to local compliance policies.” Consequently, affected customers will not be able to use functions like coin-margined futures, options, exchange-traded products (ETPs), coin-margined swaps, and USDT-margined contracts.
- The crypto exchange also said it will update its user agreement to add New Zealand as a “restricted jurisdiction,” will allow users in the country to close out their positions from August 23, and further prevent them from opening new derivatives positions on the aforementioned date.
- Meanwhile, the latest development comes after Huobi obtained registration on New Zealand’s Financial Services Provider Register (FSPR) in June.
- The registration with the FSPR enabled the company to “operate a regulated foreign currency exchange and money or value transfer services in New Zealand, which supports crypto OTC trading services.”
- As previously reported by CryptoPotato, Huobi’s founder Leon Li is looking to sell his stake in the company for close to $3 billion.
- Some of the interested buyers are rumored to be crypto heavyweights, such as Justin Sun and Sam Bankman-Fried.
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