Trading in derivatives by Huobi Global is stopped in New Zealand

by | Nov 18, 2022 | Market News, News, Trading101 | 0 comments

Huobi Global cites adherence to local laws as the justification for leaving New Zealand off of its list of nations where it conducts derivatives trading.

Bitcoin exchange The suspension of derivatives trading in New Zealand has been announced by Huobi Global. According to Huobi’s statement, the new prohibitions against derivatives offerings are necessary to comply with local laws.

Users in New Zealand will no longer be able to access derivatives trading services, such as futures and swaps with coin margining, contracts with Tether margining, options, and exchange-traded goods.

On August 23, the new limitations will go into effect. Huobi Global will stop accepting users with New Zealand Know Your Customer-verified locations as well as IP addresses from the country on the same day. Only on and after the restrictions’ effective date are users permitted to close out open positions.

The Huobi Group reacted to Cointelegraph in a formal statement, saying that the Group is trying to make an effort to abide by the local laws and regulations in each nation and region where they do business. Compliance is a need before releasing goods and services in any new country, and Huobi shall always adhere to this fundamental tenet.

There are 11 jurisdictions on Huobi’s list of prohibited countries, which is always growing. nations like the United States, Canada, and Japan are included in this list. Derivative trading is not available in the United Kingdom, Taiwan, and mainland China.

This comes just after news broke that Huobi co-founder Leon Li wanted to sell a $1 billion+ majority stake in the business. Huobi Global was established in 2013 and manages a daily trading volume of more than $1 billion.

Despite the New Zealand development, the corporation has recently taken steps to broaden its product offers. Early in August, Huobi got approval from Australian authorities—a nation next to New Zealand—to operate as an exchange provider.

Through a subsidiary called HBIT, Huobi obtained a Money Services Business licence from the U.S. Financial Crimes Enforcement Network in July.

These advancements coincide with Huobi’s $1 billion investment initiative, which focuses on the growth of Web3 and decentralised finance.

Thai affiliate of Huobi closes as Dubai and New Zealand licenses are granted.

Huobi, a cryptocurrency trading platform, has obtained additional licences in New Zealand and the United Arab Emirates as part of its ongoing global expansion. Huobi Group secured the company’s first-ever licence at the Dubai International Financial Centre (DIFC) by obtaining the Innovation License under the DIFC.

Lily Zhang, the chief financial officer of Huobi Group, reports that the business has been granted a DIFC licence by Dubai’s Virtual Assets Regulatory Authority (DIFC). The DIFC enables Huobi to encourage technology businesses to establish operations in Dubai rather than serving as a trade licence. In order to provide its services in New Zealand, Huobi has also been registered on the Financial Services Provider Register (FSPR). The Virtual Assets Regulatory Authority (VARA) in Dubai will grant Huobi a Virtual Asset MVP License, enabling it to provide a variety of cryptocurrency exchange goods and services.

All exchanges are obliged to register on the platform in order to provide trading services to local users, therefore the FSPR registration is the first step Huobi Group has taken toward growing its bitcoin trading business in New Zealand.

The registration enables it to offer money exchange services and services for the movement of money or value in New Zealand. A spokeswoman for Huobi informed Cointelegraph, that they would want to stress that Huobi Thailand was not a part of Huobi Global, but rather an independent company founded in 2019 as part of Huobi Cloud. The registration enables HBGL New Zealand Limited, a local subsidiary of Huobi, to run a regulated foreign exchange business and provide money or value transfer services in New Zealand.