Crypto Exchange Huobi Restricts Derivatives Leverage Trading to Less Than 5x in China

By Bhushan Akolkar
Updated June 17, 2021
Breaking: Justin Sun Predicts Huobi Global's Profit To Rise Four Times In Q2

With China’s recent crackdown on crypto trading, crypto exchange Huobi is introducing further restrictions on its platforms. In an exclusive revelation, Chinese crypto journalist Colin Wu reported that now restricted leverage margin to less than 5x for its existing Chinese users. This is a massive drop down considering that the previous leverage margin was 125x.

A few weeks back following the regulatory rout in China the crypto exchange completely stopped new users from trading derivatives on its platform.

As per data from CoinGecko, Huobi’s 24-hour derivatives exchange clocked $2.9 billion in trading volumes ranking third while Binance was in the first position $6.6 billion in transaction volumes.

Apart from just China, Huobi is also facing tough times in other Asian markets like South Korea amid rising regulatory actions. On Wednesday, June 16, local news publication Arirang reported that Huobi Korea has stopped trading its native crypto Huobi Token following regulatory warnings from South Korea’s Information Security Management System.

Huobi Burns $138 Million Worth of HT Tokens In May

In its latest press release, Huobi has confirmed that it burned 5.826 million HT worth approximately $138.579 million during the last month of May. This was a part of the scheduled burning event conducted by the exchange. Ciara Sun, Vice President of Huobi Global Markets said:

“The excellent performance figures in HT stem our core trading business. We have recorded a $68.63 billion trading volume in Q1, according to the data released by TokenInsight’s 2021 Q1 Spot Market Research Report. Huobi has ranked first among exchanges with spot trading volume between US$50 billion and US$100 billion during this period”.

Huobi Token is the native cryptocurrency of the Huobi exchange. It brings a range of benefits like trading fee and margin discounts. Every quarter Huobi uses 20% of its revenue to buy HT tokens from the open market and burn them.

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Bhushan Akolkar
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
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