U.S. Based Accounts to be Frozen by Huobi Global
The Securities and Exchange Commission (SEC) has become more and more involved with the cryptocurrency space as the years have gone on, resulting in many companies being sued by the United States Government Agency. As more exchanges have opened, the SEC has kept a close eye on them, and as a result, exchanges such as Binance were forced to create a separate platform just for US citizens, closing their accounts on the main platform.
Now it seems Huobi Global is to follow suit by freezing U.S based accounts. In a recent statement by the company, they say it is their mission to crack down on accounts that have violated their terms and conditions. Although the number of U.S accounts has decreased, there are still many on the popular exchange, resulting in a complete freeze. Huobi Global has stated that:
“In line with the laws and regulations of the United States with respect to crypto-assets, our User Agreement expressly prohibits users in the United States from using our platform. For that reason, the accounts of US users have been gradually disabled to prevent any further trading or transferring.”
After China started cracking down on cryptocurrency in the past, Huobi had the highest trading volume of any exchange in Asia, making a name for itself as an easy to use platform.
This news isn’t surprising as Huobi have always tried their best to restrict U.S based accounts as they like to follow the rules, however there are various workarounds to the ban which users have utilized, such as using a VPN.
The company has been kind enough to offer the users whose accounts will be frozen a grace period where they can withdraw their funds in time before they are completely unable to use the platform. The deadline for this is November 13th.