Cryptocurrency exchange, Huobi Global has announced plans to freeze all the funds from United States users. Why? To comply with the local law.
According to reports, Huobi Global will do this on the 13th of November.
Since it goes against the exchange’s user agreement, the exchange advised customers to return margin trading funds and withdraw all assets before the 13th. They can use an account with funds less than the minimum withdrawal limit to convert to BTC/USDT. And then make the withdrawal.
Regulations coming to play
The cryptocurrency exchange explained that the American regulatory environment caused the decision. After all, its user agreement restricts customers in the U.S. from trading on the Huobi exchange platform. Thus, the reason behind disabling U.S customers’ accounts, preventing trading or transferring.
Besides, Huobi Global created a window of eight days (from today) before it’ll freeze accounts of all U.S users. Afterward, customers will get refunded by the exchange in Bitcoin (BTC) or Tether (USDT). Also, Huobi Global exchange promised to refund points card purchases at a 1:1 ratio in USDT.
Furthermore, users that reach out to the exchange’s customer support before this Sunday and get their remaining balances converted on Tuesday.
Houbi US is staying
Despite the turn of events, Huobi Global doesn’t plan to exit the U.S. market. The Chinese exchange plans to redirect its U.S. customers to its San Francisco-based partner, HBUS. Huobi US (HBUS) is somewhat like Binance.US. Likewise, it runs and operates independently.
The American exchange also stands as FinCEN-registered MSB. Also, it complyies with all applicable AML/CFT legal requirements. The subsidiary exchange SMART Digital Asset Evaluation Framework ensures that only virtual currencies with sound operational, technological and compliance track records are eligible for listing.
To remind, Huobi Global implemented new trading tools in the UAE and the Middle East market. They will allow customers to trade Bitcoin, Ethereum and other digital assets directly from their smartphones. The Japanese arm of Huobi hs recently raised about $4.6 million to expand its services.