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Houbi Pro Exchange To Suspend Crypto Trading For its Users In Japan

Huobi Pro has sent an email to its users in Japan indicating that the crypto exchange will be suspending trading in the country effective July 2nd, 2018. The 4 takeaways from the email as transcribed by Coinpost.jp are as follows:

  1. Under the laws of Japan, Huobi Pro has suspended virtual currency exchange services for its users in Japan
  2. Huobi Pro will go ahead and delete its Japanese-centric pages from its homepage beginning july 2nd
  3. Suspension of services to commence on the 2nd of July, 2018
  4. Further information to be provided at a later date

The exchange would later issue the following disclaimer when users in Japan attempted to use the site:

1. Huobi is a company that deals with electronic assets through the Internet and telecommunication network, compliant with the laws of each country and conducting business activities. Huobi Global Limited. Is a company registered and established in the Seychelles Republic under the relevant laws of the Seychelles Republic.

2. Huobi does not register the virtual currency exchange business based on the “funds settlement law” of Japan. Therefore, we do not conduct virtual currency exchange business in Japan.

3. Huobi respects Japanese law and has not solicited any persons who reside in Japan (individuals or corporations) at all.

From this disclaimer, it can be deduced that the exchange is not registered in Japan through the Financial Services Agency (FSA). Huobi Pro follows a similar move by HitBTC which also suspended trading activities in the country due to the same reasons. HitBTC had announced it was in talks with the FSA to launch its activities in line with the regulatory framework of the country. Perhaps Huobi Pro will follow a similar path and draft a road-map of reestablishing operations in Japan.

The Japanese regulators have been meticulously cracking the whip on exchanges in the country. The FSA issued business improvement orders to 6 exchanges on Friday, June 22nd. This act by the agency has been blamed for the flash crash that soon followed on the same day and led to Bitcoin trading at levels of $5,800 by the 24th of June.

As much as crypto enthusiasts and traders might dislike regulation, the sooner the guidelines are ironed out by the major stake-holding countries (USA, Japan, S, Korea, Russia, Australia, UK), the sooner the markets will resume to their winning ways. The country of Malta has led the way by example when it approved 3 cryptocurrency and blockchain bills earlier today.

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Huobi Pro Exchange to Suspend Crypto Trading in Japan

Cryptocurrency exchange Huobi Pro is to cease offering trading services to investors living in Japan starting from next month.

According to a news report from Coinpost, the exchange announced the news in an email sent to investors in Japan on Wednesday, stating it will remove the Japanese option from its homepage and suspends trading services from July 2.

In a response to a CoinDesk enquiry, Huobi Pro – currently the third largest exchange in the world by 24-hour trading volume – confirmed the news, but has yet to provide further details such as the plan for users’ asset withdrawals.

As suggested in the Coinpost report, Huobi Pro made the decision to withdraw Japan-based services because is not registered with the Financial Services Agency (FSA), Japan’s financial watchdog, as mandated under a money transaction law introduced in 2016. It is not currently clear if the exchange has been contacted by the FSA over the issue.

Earlier this year, Huobi Pro indicated it was partnering SBI Virtual Currency – the licensed exchange backed by Japanese financial giant SBI Holdings – to launch a regulated platform in Japan. However, the plan was notably scrapped by SBI Virtual Currency back in March.

According to web traffic tracking site Alexa, currently 13.3 percent of the visitors on Huobi Pro come from Japan. The company would not indicate to CoinDesk when asked if it is considering filing a registration application with the FSA as a next step.

In March, Binance, currently the second largest cryptocurrency exchange by trading volume, notably received a warning from the FSA stating that, as a foreign entity, it was offering trading services to Japanese residents without a license. Binance confirmed at the time that its legal team was in dialogue with the agency.

Traffic light image via Shutterstock

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Huobi Pro Launches New Crypto Market Index

Cryptocurrency exchange Huobi Pro is launching a new market index for its customers, the company announced Wednesday.

The Huobi main force index will track ten different digital assets traded against USDT on its platform in real time, according to a press release.

The index will “reflect the overall performance of Huobi Pro market,” allowing investors to see a single aggregated feed rather than having to check on individual assets one at a time.

The index will use weighted samples, according to the press release, which explained:

“Huobi main force has divided digital assets into four main categories: digital asset, platform, application and real asset substitute (of which real asset substitute is not included in the index because it represents the price of real assets). Assets will be ranked according to their turnover, and top assets of each category will be selected as index samples. After samples are selected, the sample weight will be calculated based on the daily average trading volume of the previous quarter.”

Furthermore, Huobi plans to “launch index-based products with Huobi’s main force index as the tracking target at Huobi Pro” by June 10.

Huobi also has a contingency in place in case an asset is delisted, the press release stated, noting that “when an unexpected delisting of the index component occurs, the sample is temporarily replaced. And the coins that are ranked first in the candidate list will be selected as the sample coins in turn.”

Market index image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Binance, Bitfinex and More: New York Launches 'Inquiry' Into 13 Crypto Exchanges

New York’s attorney general is taking a closer look at some of the world’s most popular cryptocurrency exchanges.

Attorney General Eric Schneiderman announced the “Virtual Markets Integrity Initiative” on Tuesday, saying it was “a fact-finding inquiry into the policies and practices” of cryptocurrency trading platforms. Letters were sent to 13 exchanges, seeking information about their “operations, use of bots, conflicts of interests, outages, and other key issues,” according to a press release published on Tuesday.

“With cryptocurrency on the rise, consumers in New York and across the country have a right to transparency and accountability when they invest their money. Yet too often, consumers don’t have the basic facts they need to assess the fairness, integrity, and security of these trading platforms,” Schneiderman was quoted as saying.

Letters were sent to the companies that operate GDAX, Gemini, bitFlyer, Binance, itBit, Gate.io, Huobi.Pro, Bitfinex, Bitstamp, Bittrex, Kraken, Tidex and Poloniex (the latter of which was recently acquired by Circle).

According to Schneiderman, the inquiry is also focused on key issues such as “internal controls and safeguards to protect consumer assets.” In statements, Schneiderman’s office said that the effort would also focus in part on the exchanges that explicitly do not operate in New York because of regulatory concerns.

“We are aware that certain trading platforms have formal rules barring access in New York and may not have a license to engage in virtual currency business activity in New York. Among other topics, we are asking platforms to describe their measures for restricting trading from prohibited jurisdictions,” the announcement stated.

Eric Schneiderman image via a katz / Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.