The leading Seychelles-based cryptocurrency exchange, Huobi Global, announced on Tuesday, August 16 that it would cease offering derivatives trading services to users of New Zealand from August 23.
New Zealand added to the list of restricted areas.
The exchange announced on its website that it would cease offering services, including futures contracts on margin on parts, swaps on margin on parts, contracts on tether margin (USDT)options and all exchange-traded products (AND P) New Zealand users. That day, the exchange announced that it would update its user agreement to list New Zealand as a “restricted jurisdiction” for derivatives trading.
Huobi explained that it was restricting “New Zealand user accounts for derivatives trading in an orderly manner while ensuring the safety of user assets”.
Under the Restricted Jurisdiction Policy, the exchange does not offer derivatives to approximately 12 jurisdictions, including the UK and Mainland China. Additionally, the exchange does not offer full service to users in 11 jurisdictions, including the United States, Canada, Japan, Iran, and Singapore.
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A global expansion
In June, Huobi has won his first license in New Zealandexpanding its global reach. Next, Huobi has been registered with the register of financial service providers (FSPR) in New Zealand to offer crypto-trading services in the country.
The record FSPR is the first step for Huobi to expand its trading activity by crypto in the island country. All cryptocurrency exchanges must be registered there in order to offer trading services to local users. Registration allows the local entity to Huobi, HBGL New zealand Limitedto operate regulated foreign exchange, asset management and funds transfer services.
Otherwise, Huobi Group also obtained a new license to operate in Dubai. The last two regulatory achievements of Huobi came shortly after the Thai company’s subsidiary was permanently closed in mid-June after the Securities and Exchange Thailand’s commission revoked the company’s business license. It means that Huobi has not yet met the requirements for providing services in the above jurisdictions.