Huobi, the popular Singapore-based crypto trading exchange, has made an announcement through a post on its official website that it shall be freezing the accounts being operated by US residents with a view to restraining the activities of those investors who fail to comply with the User Agreement. The exchange has decided to implement a complete freeze of all US residents’ accounts on November 13, 2019.
According to the reports, Huobi will offer its remaining U.S clients a crucial grace period so that they get a fair chance to manage their assets beforehand. Though its Terms of Service affirms banning of US clients, there were US traders performing transactions on the platform. However, the exchange platform has no plans of stealing the money of US clients in any way. Until the deadline of November 13, the owners will be allowed to refund Huobi Point Cards and withdraw their crypto funds from their accounts.
The United States has failed to chalk out an efficient framework for the operation of crypto exchanges in the country. The country does not have concrete rules concerning payment of taxes, operation of the business, etc. On one hand where countries in Europe and Asia have put in efforts to launch strategic legal outlines for the people involved in the cryptocurrency business, the United States had disappointed the exchanges with its negligence as they continue to face issues in operation. Huobi stands tall as one of the largest crypto exchanges in Asia.
Several times, the exchange platform recorded the highest trading volume in the region in comparison to other trading exchanges. Apparently, when China and other east-Asian countries began to pull the strings for the cryptocurrency arena, Huobi started to look for proliferation of its business operations in other countries as well. It opened offices in Korea and later in Japan.