Cryptocurrency exchange Huobi Global will stop offering derivatives trading services to users in New Zealand starting next week, just a couple of months after it expanded its operations to the country, the company said Tuesday.
- The Seychelles-based exchange will halt services, including coin-margined futures, coin-margined swaps, tether (USDT)-margined contracts, options as well as offering exchange-traded products to New Zealand-based users on Aug. 23, according to a notice on Huobi's website.
- On the same day, Huobi's user agreement will be updated to include New Zealand as a "restricted jurisdiction" with respect to derivatives trading.
- Huobi expanded its operations to New Zealand as recently as June, saying it had been entered into the country's financial services provider registry at the New Zealand Companies Office.
- Users from 11 jurisdictions, including the U.S., Canada, Japan, Iran and Singapore, are already prohibited from using "all services" offered on the Huobi platform, while users from 12 jurisdictions including the U.K. and mainland China are blocked from accessing derivatives products, Huobi's user agreement says.
- The exchange said it will restrict "New Zealand user accounts for derivatives trading in an orderly manner while ensuring the safety of user assets."
- Huobi Global and New Zealand's financial regulators didn't immediately respond to requests for comment.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.