Huobi Global started banning domestic users from opening positions on derivatives markets
The worst news is coming to Bitcoin. According to information from the Wu Blockchain, Huobi bans Chinese users from derivatives trading as locked on crypto intensifies.
After the Chinese government requested a crackdown on Bitcoin mining and trading, China’s largest exchange, Huobi, seemed to suddenly ban all new Chinese users from opening contract/option transactions. pic.twitter.com/zkD1EgOXk8
— Wu Blockchain (@WuBlockchain) May 22, 2021
Huobi bans Chinese users from derivatives trading as an emergency on crypto intensifies
The most popular cryptocurrency exchange for Asian traders Huobi Global has started banning domestic users from opening positions on derivatives markets.
It looks like the exchange’s administration has implemented new restrictive measures regarding the latest announcements by Chinese officials.
Specifically, domestic users are currently restricted from opening positions in the derivatives section, in both futures and options contracts. As a result, Chinese traders are being excluded from the most profitable cryptocurrency trading segment.
As of 2019, derivatives trading overtakes the spot segment by a wide margin, so these restrictions, if true, will have a huge impact on the crypto landscape.
According to Wu Blockchain, Binance, Huobi, Bybit, and OKEx are the world’s largest crypto derivatives exchanges. Derivatives trading is much more important to them than spot trading.
Binance, Huobi, Bybit and OKEx are the world’s largest cryptocurrency derivatives exchanges, with trading volumes far exceeding the spot, and profits are also very rich. The participation of retail investors is easy to lose money, which is called “contract casino”.
— Wu Blockchain (@WuBlockchain) May 22, 2021
Also because of the recent news, the price of Bitcoin fell 12% shortly after the announcement of the plan to ban cryptocurrency mining by the Chinese supervisory authorities. Earlier this week, Bitcoin fell to a multi-month low of $30,000 as Chinese regulators reiterated their recommendation to Chinese entrepreneurs facilitating crypto-related activities. China periodically issues this type of statement, so most long-term holders interpret it as “FUD”.
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