One of the world’s largest cryptocurrency exchanges, Huobi, will freeze the accounts of its American customers on November 13. This makes the company behind the exchange known through a blog post that it recently published.
The exchange is operational in around 130 countries and tries to comply with all applicable laws and regulations in each country. However, this would be difficult in the United States given the relatively strict regulations. This is how Huobi explains:
In accordance with the laws and regulations of the United States regarding crypto assets, our User Agreement explicitly prohibits users in the United States from using our platform. For that reason, the accounts of US users have been gradually disabled to prevent further trade or transfer. We will freeze all US user accounts from November 13, 2019 (GMT +8).
The exchange requests all its US customers to close their open trades and to withdraw the funds in their account before this time. Huobi also invites its American customers to create an account with Huobi US.
Huobi US is a trading platform that is specifically aimed at the American market. It is managed by HBUS Holdco Inc., a San Francisco-based company and strategic partner of Huobi Global.
The fact that exchanges are launching a platform focused on the American market is becoming increasingly common. Given the strict regulations, it is difficult to meet all requirements.
For example, the exchange Binance announced in June this year that it would exclude American customers for the same reason.
Binance also launched an American platform; Binance.US. The platform recently announced that it sees an average daily trading volume of $ 15 million. In addition, the exchange will now also support bank cards for buying cryptocurrency.