Huobi trading platform has radically decreased the size of leverage allowed for its existing users
According to Chinese crypto and blockchain journalist, Colin Wu, one of the largest cryptocurrency exchanges in the market, Huobi, has limited the size of leverage it offers to existing users.
Cryptocurrency exchange Huobi thoroughly restricts leverage, preventing new users from coming to derivatives
The leverage size that Huobi traders have used so far is 125x – the maximum. However, at the moment, Huobi only allows 5x leverage. New users signing up to the platform will not be able to use leverage at all.
Source: Wu Blockchain/Twitter
With this decision to limit leverage, Huobi is implicitly preventing Chinese users from trading crypto derivatives. The reason is probably due to concerns about the current strict cryptocurrency regulation policies in China.
Huobi trading volume in the last 24 hours | Source: CoinMarketCap
According to data from Coingecko, Huobi’s 24-hour derivatives exchange ranked third with $ 2.9 billion, Binance with $ 6.6 billion.
Recently, China has continued to crack down on the Bitcoin mining market and cryptocurrency exchanges. Major search engines, as we reported, such as Baidu, recently blocked search results for Binance, Huobi, and OKEx. Weibo has also done the same with accounts and search results related to these trading platforms.
As the availability of cryptocurrency mining and trading facilities in China starts to wane, it’s likely that larger traders will phase over to areas like Hong Kong, Singapore, or the United States, where greater trading flexibility can be found.
- Search Engines In China As Baidu, Weibo Or Sogou Have Blocked Results For Major Crypto Exchanges Binance, Huobi, And OKEx
- Huobi Global Started Banning Domestic Users From Opening Positions On Derivatives Markets