• The cryptocurrency platform HUOBI applies the regulations since August 2020.
• Chinese traders use other crypto exchange platforms without regulations.
The Seychelles exchange system in East Africa, HUOBI, now allows cryptocurrencies to be withdrawn within 24 hours. This decision deals a severe blow to the crypto traders of the country.
For many crypto traders, it is absurd because the cryptocurrency market practically does not rest. However, the condition was imposed and applied to all OTC transactions. This restriction affects speculation against cryptocurrencies and very volatile Bitcoin.
This 24-hour restriction on transactions added to the bans imposed in Beijing discourages the crypto market. But, this is not everything because the transaction time can be extended to 36 hours if it comes to crypto purchases. The restriction is promoted so users can make their negotiations without taking risks.
HUOBI and its regulatory ecosystem
Although the exchange was very famous in China, its restrictions since last year are exaggerated. For August 2020, HUOBI limited transactions for 24 hours but some of its users.
OTC transfers on HUOBI are the only viable method for Chinese traders to buy cryptocurrencies. In 2013, regulators in Beijing banned payment platforms in their jurisdiction. In 2017 the government closed these exchange systems, and they continue with the prohibitions.
These OTC transactions are not regulated in almost any area of the country, platform, or even by live chat. However, Huobi exchanges the fiat currency for cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin.
Cryptocurrency platform measurements
These 24-hour regulations for the cryptocurrencies withdrawal came after HUOBI banned China from derivative trading. The battle against cryptocurrencies since Beijing does not stop, and the outlook becomes gloomier. Even BTC China, the country’s first exchange system, stopped trading due to the restrictions imposed.
Crypto platform Huobi put Bitcoin mining aside in May following crypto’s decline and bans. This platform was also the first to suspend the sale of mining equipment within the China territory.
But Beijing also reinforces its attempt to regulate or ban the Binance exchange platform. However, this encryption system has also been regulated in the UK.
HUOBI, as a crypto platform, has lost performance, credibility, and admiration for traders in China. These regulations may be another strategy that Beijing applies to crypto. However, there is no evidence to affirm or disprove the allegations about the crypto company.
Cryptocurrencies are recovering from their falling value, causing Bitcoin to trade above $34,000 today. Many institutions and governments in the world are supporting this new financial system that promises a better future.