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.
Exclusive: Due to concerns about regulatory policies, China's largest exchange Huobi recently restricted the leverage of existing users to less than 5x after stopping new users in China from using derivatives. The previous maximum was 125x pic.twitter.com/B5MWVJYGzK
— Wu Blockchain (@WuBlockchain) June 16, 2021
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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