Huobi crypto exchange will soon delist accounts of U.S. residents on its platform in an effort to get rid of users violating its User Agreement. The Singapore-based crypto exchange posted the announcement on their official website.
“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. We will freeze all US user accounts from 13 November 2019 (GMT+8) onwards,” read part of the notice.
The announcement comes just after the accounts of U.S. residents on the platform gradually depreciated in the past few months. On November 13, the exchange will freeze all the accounts run by U.S. residents.
Crypto Regulations in the US Still a Grey Area
The U.S. has always given crypto exchanges a cold shoulder, especially when it comes to regulations. On the other hand, many European and Asian countries have provided a suitable environment for crypto-related businesses to thrive. Unlike the U.S., such countries provide solid legislation that outlines how crypto-related businesses should operate.
In the U.S., there is no clear framework to define tax payments and business operations for crypto-allied firms. The government gives no assurance in passing the laws regarding the same soon. For a long period, Huobi has been one of the major crypto exchanges in Asia.
At some point, the exchange had the highest trading volume compared to any other crypto exchange in the region. However, after the crackdown on crypto businesses by China and other Asian countries, Huobi relocated to other countries outside Asia such as Korea and Japan. The company currently has a global footprint.
Freezing US User Accounts
In their Terms of Service, Huobi states that American users are banned from using the platform. However, some US users were able to open and operate trading accounts contrary to the exchange’s requirement.
Huobi now provides a grace period for the remaining U.S. users on the platform to transfer their funds and refund Huobi Point Cards before November 13, 2019.
Featured Image Source: CoinDesk
