In Brief:Â
- Huobi has ceased futures and other derivatives trading from today onwards.
- Decision comes after the Chinese government’s refusal to lift the ban on Bitcoin.
- This ban may lead to withdrawal of other crypto firms from mainland China.
Huobi, a major cryptocurrency exchange in mainland China, has ended futures and other derivatives trading on Friday, as planned.
The cryptocurrency exchange announced earlier this month that, as part of a wider plan to cease operations in China, it would settle all futures, contracts, and derivatives activities for all Chinese consumers.
In response to the Chinese government’s refusal to lift its ban on Bitcoin, Huobi was the first exchange to announce its withdrawal from mainland China.
At a shareholder meeting held on Sept. 24, the biggest cryptocurrency exchange in China decided unanimously to leave the country and cease operations.
Huobi’s strategy inspired other cryptocurrency-related platforms and companies. For example, crypto mining pools and mining equipment manufacturers followed suit.
Among others on this list are Binance, BTC.com, and Bitmain. The CoinEx crypto exchange announced its withdrawal from China, while Renrenbit, owned by “OTC king” Zhao Dong, is also shutting down its operations.
Tesla CEO Elon Musk, speaking at the Code Conference in Los Angeles at the end of September, believes crypto is on the verge of eroding the Communist Party’s power in China; for this reason, the government’s crypto ban will remain in place.
