Huobi Global, the most popular cryptocurrency exchange for Asian traders, has reportedly started banning domestic users from opening positions on derivatives markets.
New Chinese restrictions are taking shape
Journalist Colin Wu, well known for his unparalleled expertise in Chinese crypto markets, shared a screenshot taken by a Huobi trader.
It looks like the administration of the exchange implemented new restrictive measures regarding the latest announcements made by Chinese officials.
Namely, domestic users are now restricted from opening positions in the derivatives section, in both futures and options contracts. Thus, Chinese traders are getting excluded from the most profitable segment of crypto trading.
As covered by U.Today previously, since 2019, derivatives trading surpasses the spot section by a wide margin, so these restrictions, if true, would have a tremendous effect on the crypto scene.
Golden Days for FUDs of all sorts
Mr. Wu outlined that Binance, Huobi, Bybit and OKEx are the world's largest cryptocurrency derivatives exchanges. Derivatives trading is far more important for them than spot trading.
Yesterday, on May 21, 2021, Bitcoin (BTC) plunged 12 percent in almost no time following the announcement of Chinese watchdogs' plans to ban crypto mining.
Earlier this week, Bitcoin (BTC) dropped to a multi-month low of $30,000 as Chinese regulators reiterated their recommendation against Chinese entrepreneurs facilitating crypto-related operations.
China periodically issues this kind of statement, so the majority of long-term holders interpret it as "FUD."