Some Chinese traders and investors are looking for other trading options after giant Huobi tightened restrictions on derivatives products amid the ongoing crackdown on cryptocurrencies in China.

Huobi said in a statement that recent changes in the market aimed to protect the interests of investors, some services such as futures, exchange-traded products (ETPs) or other leveraged investment products are temporarily unavailable to new users and are unavailable for certain Countries and regions.

Huobi hasn’t specified which countries or regions are affected, but according to Wu Blockchain, the new restrictions are specifically targeting users in China due to the ongoing crackdown in the country.

Another example that Wu Blockchain cites to clarify the above argument is that Huobi announced on June 23 that it would cancel large-scale fiat currency transactions for large customers. In addition, many Huobi employees will migrate abroad in the near future. Previously, Huobi’s executives had essentially completed the move to Singapore, Hong Kong and other locations.

On June 23, Huobi announced that it would cancel large-scale fiat currency transactions for large customers. In addition, a large number of Huobi employees will be migrating overseas recently.

– Wu blockchain (@WuBlockchain) June 23, 2021

Huobi is one of the so-called “old trio” cryptocurrency exchanges popular with Chinese investors, the other two being Binance and OKEx. Huobi’s decision may not be taken seriously as derivative products are one of the main products that determine competition between the three exchanges in the Chinese market.

Now traders and investors are suddenly forced to look for alternatives to Huobi. The obvious alternative to Huobi is Binance. Binance is more attractive to Chinese traders in part because the company has relocated most of its operations and employees outside of China since the country cracked down on crypto exchanges in 2017.

Huobi, China’s largest exchange, fears regulation and is actively restricting future functions, leading users to head to Binance. Binance’s futures trading volume has surpassed that of other exchanges. pic.twitter.com/BXf59VxCon

– Wu blockchain (@WuBlockchain) June 24, 2021

Huobi, China’s largest exchange, is “afraid” of regulation and restricted functions in derivatives, which is causing users to turn to Binance. The trading volume of Binance futures completely outperforms other exchanges.

At the same time, Wu said OKEx is not a good choice, especially for long-time crypto traders in China. In October 2020, the exchange announced an unexpected 5-week suspension of the payout service on its platform, which caused great confusion among customers.

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