Huobi forcing out US traders out

[Wexnident]

It seems like Huobi has finally had enough and wants to push every US trader out of their exchange because of the strict regulations Americas have with crypto. Although they have a US based exchange that US citizens could use, having these different exchanges could be quote confusing don't you think?

Source: https://cointelegraph.com/news/huobi-global-to-freeze-us-customer-accounts-by-mid-november/amp

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[ChrisPop]

United States, implicitly SEC are renowned for their strict regulations and drastic penalties. It's pretty simple nowadays. If you don't have the proper authorizations and/or licenses for operating you have no business with the US citizens. I don't know if Huobi is chinese r not but especially with the current trade war you'd think they want to take extra precautious measures.

[Bttzed03]

^ I doubt if this decision has anything to do with the trade war between the two countries.


US SEC regulations is a pain in the ass for these exchanges. The move is kind of a win-win situation for Huobi exchange because they still got to keep their US customers thru a local partner and not be bothered by US regulators. They better make sure to provide enough coins/tokens for their regular US traders.

[1Referee]

Nothing too shocking.

If you're a us trader and use an exchange that hasn't yet booted us residents from its platform, then you're begging for problems if you don't withdraw your funds beforehand. It has been a trend amongst exchanges to follow this course of action, so better just use an exchange as Coinbase. You'll get to sign up there eventually anyway because the non kyc options are running out quickly.

The worst part about using non kyc exchanges is that they don't have to justify any of their actions to their users, so you're at their mercy completely. It's not worth the stress and hassle at all.

[LeGaulois]

I don't see what 'confusion' could come from it. You can compare for example with Amazon, it has .com, .jp, .it, .uk, .fr, and so on, people don't confuse with .uk if they are from .it.

I think now the US citizens are used to that. And nowadays creating a duplicate platform targetting Americans is the next trend. See Binance or even Bittrex recently.

[Wexnident]

I don't see what 'confusion' could come from it. You can compare for example with Amazon, it has .com, .jp, .it, .uk, .fr, and so on, people don't confuse with .uk if they are from .it.

I think now the US citizens are used to that. And nowadays creating a duplicate platform targetting Americans is the next trend. See Binance or even Bittrex recently.

That's the point. Isn't it quite inefficient with such duplicate platforms are made? Or is it actually better for duplicate platforms so that the server wouldn't possibly overload?
I don't know, the idea I had was a kind of a central hub for a process like exchanges where pretty much every country that is registered in the said hub could trade there directly.

[clickerz]

I don't see what 'confusion' could come from it. You can compare for example with Amazon, it has .com, .jp, .it, .uk, .fr, and so on, people don't confuse with .uk if they are from .it.

I think now the US citizens are used to that. And nowadays creating a duplicate platform targetting Americans is the next trend. See Binance or even Bittrex recently.

Good observation sir. It seems like  localization to lure clients, and also each country has its own law especially on crypto. Some are open, some does not support at all and some strictly regulating it. Looks like exchanges now are offering personalize service for each country to suit its  laws for their  clients and maybe Houbi is gearing to position itself also.

[JeromeTash]

US SEC regulations is a pain in the ass for these exchanges. The move is kind of a win-win situation for Huobi exchange because they still got to keep their US customers thru a local partner and not be bothered by US regulators. They better make sure to provide enough coins/tokens for their regular US traders.

Actually there are some tokens/coin that are not complaint to SEC regulations but are listed in Exchanges like Huobi. So in order to avoid getting in trouble with SEC. The exchanges try to force out US traders to local partners that only have SEC compliant tokens/coins.

Those local partners usually never have all the tokens that the main exchange has. A good example is Binance US.

[ashmodeus]

I don't see what 'confusion' could come from it. You can compare for example with Amazon, it has .com, .jp, .it, .uk, .fr, and so on, people don't confuse with .uk if they are from .it.

I think now the US citizens are used to that. And nowadays creating a duplicate platform targetting Americans is the next trend. See Binance or even Bittrex recently.

That's the point. Isn't it quite inefficient with such duplicate platforms are made? Or is it actually better for duplicate platforms so that the server wouldn't possibly overload?
I don't know, the idea I had was a kind of a central hub for a process like exchanges where pretty much every country that is registered in the said hub could trade there directly.

all of happen because requlation of US country, and even this was not their will at all.
"In the announcement, Huobi states that the American regulatory environment for cryptocurrencies has forced it to prohibit U.S.-based users from the platform "
and a duplicate platfrom is the second plan for an exchange that doesn't want to lose customers from the U.S.
and the only reason that makes sense from this policy is to make sure the customers of the U.S. don't follow the trend of stupid tokens that have caused so much lost of money.

[adroitful_one]

US SEC regulations is a pain in the ass for these exchanges. The move is kind of a win-win situation for Huobi exchange because they still got to keep their US customers thru a local partner and not be bothered by US regulators. They better make sure to provide enough coins/tokens for their regular US traders.

Actually there are some tokens/coin that are not complaint to SEC regulations but are listed in Exchanges like Huobi. So in order to avoid getting in trouble with SEC. The exchanges try to force out US traders to local partners that only have SEC compliant tokens/coins.

Those local partners usually never have all the tokens that the main exchange has. A good example is Binance US.

Also, they want to make sure they get all of their users personal information so they can collect taxes on anyone they feel it necessary to do so in the future. Being compliant with these regulations means that any request of information from the government will probably be adhered to. It's not the easiest task to try and keep track of who owns what cryptocurrency. So, why not make it easy and have anyone that trades crypto in the US on a list. The top ones will eventually pay taxes on all of their holdings there.

[rijaljun]

It seems like Huobi has finally had enough and wants to push every US trader out of their exchange because of the strict regulations Americas have with crypto.

So, Huobi will be no longer available for US citizen? That's a part of regulation, people should accept it since they want centralized government to regulate major part of crypto. Should not be a problem, right?

Although they have a US based exchange that US citizens could use, having these different exchanges could be quote confusing don't you think?

Why would you be confused when there is a branch one? You should only use the one given for your country and leave others branches. It could also help local people to get best customer supports.

[Pearls Before Swine]

because of the strict regulations Americas have with crypto.

Argh to the tenth power.  I live in the U.S. and I'm unaware of what all these regulations really are.  Is there any way I can find out?  I think it varies by state and that it isn't a federal gov't thing because exchanges like binance have a blacklist that is basically an exclusion list of states. 

This makes me a little sad, I have to tell you.  Though I never used huobi, I don't like to see any exchange do something like this, because its an ominous sign of things to come.  Where is huobi based out of, anyway?  Something is going on with U.S. states, tho.  That much is clear.  Thank you to op for the heads up on this.

[LeGaulois]

I don't see what 'confusion' could come from it. You can compare for example with Amazon, it has .com, .jp, .it, .uk, .fr, and so on, people don't confuse with .uk if they are from .it.

I think now the US citizens are used to that. And nowadays creating a duplicate platform targetting Americans is the next trend. See Binance or even Bittrex recently.

That's the point. Isn't it quite inefficient with such duplicate platforms are made? Or is it actually better for duplicate platforms so that the server wouldn't possibly overload?
I don't know, the idea I had was a kind of a central hub for a process like exchanges where pretty much every country that is registered in the said hub could trade there directly.

No, it isn't inefficient and I can tell you why, at least in my opinion.

Despite all the resources and money spent on, it's still worth the effort. The American market is so huge that they can't avoid it. From an economic point of view for enterprises, refusing this market is like shooting yourself in the foot. Maybe even some platforms wouldn't survive in the long run.

You can see the same thing in the real economy when you see multinational corporations creating subsidiaries in foreign countries to reach, another market/country.

[josephdd1]

There's literally hundreds of different exchanges now, and most of the major ones have ceased providing services to users in the US because they're worried that the SEC or IRS will be all over them.

That's why you should just stick with decentralized platforms, since most of these do not have any restrictions on countries that can trade. I am aware that these are not great for high volume traders, but if you're a low volume trader they are usually sufficient.

[youdacapt]

That's the point. Isn't it quite inefficient with such duplicate platforms are made? Or is it actually better for duplicate platforms so that the server wouldn't possibly overload?
I don't know, the idea I had was a kind of a central hub for a process like exchanges where pretty much every country that is registered in the said hub could trade there directly.

it is not about the effectiveness of duplicates or not, the SEC is very strict with the assets traded, and only allows trading of coins according to their regulations. So they want more detail with that. The negative thing that will appear is that the trading volume is split because it is divided into several user server domains, this greatly influences price movements, but is actually good for long-term improvement.

[leowonderful]

I like that Huobi's trying to keep some sort of relevance in the American crypto markets by offering an alternative, but it's likely not going to be a success for the short term as trading volume seems to be extremely low on the site and people seeking alternatives are likely going to opt for other already well-established exchanges in the U.S like potentially Coinbase Pro or maybe Gemini. I'm still interested in the developments on this exchange nevertheless.

[Drai]

This news has been expected for a while now but I have to admit that the timeline still sucks, they are giving all US traders just 10 days to vacated the exchange and this isn't fair at all in my opinion, there should be a minimum of 30 days grace to traders to ensure that nobody loses their funds if they don't get the information in time, this is one of the reason why Binance remains at the top of the food chain, they definitely didn't handle it this shabbily when they reached the decision to stop US traders from trading in the main Binance exchange.

[BitHodler]

people seeking alternatives are likely going to opt for other already well-established exchanges in the U.S like potentially Coinbase Pro or maybe Gemini.

Bingo! It's only a matter of time before people stop hopping from exchange to exchange but go for more solid ones even though they aren't too comfortable walking themselves through KYC verification.

One way or another, people want to trade and be able to actually cash out their profits to fiat, which you need an exchange such as Coinbase Pro for. It's all fine trading on Binance and so on, but you can't cash out to dollars.

I very much doubt that Binance's US arm will do well.... if people are going through KYC verification they rather do it on an exchange as Coinbase Pro than Binance which hasn't been too positive with everything that happened this year.

[zeze18]

It seems like Huobi has finally had enough and wants to push every US trader out of their exchange because of the strict regulations Americas have with crypto. Although they have a US based exchange that US citizens could use, having these different exchanges could be quote confusing don't you think?

Source: https://cointelegraph.com/news/huobi-global-to-freeze-us-customer-accounts-by-mid-november/amp

Yeah just like binance they seperated the traders from US into different exchange and they created Binance US. I think they made this kind of decision is beside america's regulation for crypto is also because from teh statistic american is the biggest country crypto ownership that beats china. So, i think it's okay if they only have to trade with their fellow americans because they will still have decent volume

[Henri Cartier]

Yes, many exchanges do not support US citizens for trading on their platform. There are few exchanges who support few states in the USA and it is restricted in other states.