The end of the year is approaching, and Huobi Clearing has also entered the final countdown.
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(A "clearance notice" pops up on Huobi's official website)
Various signs show that Huobi’s exit from the Chinese market is a foregone conclusion.
From Huobi.com in 2013 to Huobi Global today, Huobi, which has been established for 9 years, has accompanied users in mainland China through multiple bulls and bears, and now it is time to officially say goodbye.
For Huobi itself, it is inevitable that the business divestiture will be affected in the short term, but moving towards a compliant overseas market will bring a new wave of development opportunities for it. In the future, Huobi will once again compete on the same stage with Coinbase, Binance and other competitors in the global market.
1. Regulation tightened and Huobi exited
Huobi’s withdrawal from the Chinese market is the inevitable result of the country’s tightening of the cryptocurrency policy.
In May of this year, the Financial Stability and Development Committee of the State Council proposed "cracking down on bitcoin mining and trading activities" in a meeting, setting off a new wave of supervision; Xinjiang, Qinghai, Inner Mongolia and other provinces and cities across the country have successively issued bans on virtual currency Mining was rectified and cleaned up, and a large number of mines were shut down and chose to go to sea.
However, in the eyes of some crypto users, this round of rectification is mainly aimed at mining companies and has limited impact, and does not affect cryptocurrency transactions. Despite this, Huobi took the lead in announcing that it would no longer open derivatives transactions to new users in mainland China.
In the following months, the policy continued to tighten, and there was no sign of letting go. On September 24th, the most stringent ban in history was promulgated. The People's Bank of China and other ten ministries and commissions jointly issued the "Notice on Further Preventing and Dealing with the Risk of Hype in Virtual Currency Transactions", clearly emphasizing the development of businesses such as fiat currency exchange for virtual currency, currency transactions, and currency issuance. It is an illegal financial activity, and the provision of services by overseas virtual currency exchanges to residents in my country through the Internet is also an illegal financial activity.
"Announcement on Gradually and Orderly Retire Existing Users in Mainland China""Announcement on Gradually and Orderly Retire Existing Users in Mainland China", clearly stated that Huobi Global has stopped the registration of new users in mainland China on September 24, 2021; for existing users whose identities are authenticated as mainland China, it is planned to ensure that user assets Complete orderly clearance under the premise of safety.
Since then, Huobi has proved its determination to clear with a series of actions. In the past few months, Huobi has successively issued announcements saying that it has shut down a number of services for users in mainland China:
On November 26, Huobi officially announced that it would stop providing airdrop services to users in mainland China;
On November 30, Huobi officially banned users in mainland China from conducting grid strategy transactions;
On December 14, Huobi will close the deposit function for users in mainland China;
On December 15th, Huobi will stop currency transactions for users in mainland China;
On December 31, the OTC CNY transaction will be delisted.
In addition to publishing announcements on the official website, Huobi officials also notified users of specific clearing and withdrawal rules through emails, site letters, etc., reminding users to withdraw assets in a timely manner; The Chinese market is "completely cleared" and "leaving no room".
There are also some users in mainland China who choose to purchase overseas identity authentication or handle institutional identity authentication, so as to continue to obtain Huobi encrypted transaction services. In this regard, Huobi insiders said that as long as the ultimate beneficiary is a user in mainland China or lives in mainland China, they cannot apply for an institutional account. Moreover, Huobi also completely blocks IP access from mainland China from a technical level.
A series of measures all demonstrate the determination of Huobi to withdraw: this is an out-and-out complete withdrawal, leaving no room for it.
2. Assets are withdrawn in an orderly manner, and beware of fraud and theft
One is
One isAsset cashabilitytwo is
two isWithdrawal Delay Issue. Huobi has established a retention period for the withdrawal function, and the withdrawal function will continue to be retained for 1 to 2 years. After the withdrawal, users in mainland China who have opened a Huobi Global account can still log in to their account, but they can only view personal information. Apply for withdrawal of personal assets, no transactions are allowed.
Although there is still half a month before the final withdrawal date, considering that some cryptocurrencies may face liquidity problems before they expire, resulting in a sharp drop or even failure to trade, it is recommended that users trade and withdraw as soon as possible. Huobi officials also issued a reminder that users are requested to withdraw coins or dispose of assets 15 days in advance to avoid various emergencies that may lead to asset losses.
When withdrawing coins, users may also encounter scams, resulting in theft of assets. Odaily has noticed that some lawbreakers have recently committed fraud under the pretense of Huobi withdrawal.
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(fraud SMS)
Of course, in addition to pretending to be the Huobi official, criminals will also pretend to be public security organs, using various excuses such as "trading cryptocurrency is illegal", asking users to transfer assets to the addresses provided by fraudsters; once the transfer is completed, it is difficult to recover user assets . This type of scam is also the easiest to fall for when you are in a state of panic.
The last kind of scam is to use the greed of ordinary people to carry out fraud. Criminals use "Huobi's official compensation to cancel users" as an excuse to guide users to transfer assets or share account and password information, thereby committing fraud.
In response to the above scams, Huobi officially reminded that any behavior of withdrawing coins guided by phone calls or text messages is a scam. Do not click on links contained in unfamiliar text messages or emails, and do not provide your personal account information, SMS verification codes and other important information to strangers or third parties at will. All information is subject to official announcements, and beware of fraud.
Currently, Huobi users can log in to the app or official website when withdrawing coinshttps://www.huobi.com/zh-cn/(alternate domain name:https://www.huobi.mp/zh-cn/), select "Assets", click "Withdraw" to enter the withdrawal page, enter the withdrawal address, and complete the withdrawal operation. (See the coin withdrawal tutorial for details:https://www.huobi.mk/support/zh-cn/detail/34893278495346secondary title
3. Going to the overseas compliance market
Withdrawal from the Chinese mainland market will inevitably have a certain negative impact on Huobi's short-term business volume. But in the long run, it may not be a rebirth, getting rid of the shackles, and embracing global encrypted users.
Judging from the current global policies, the United States, Japan, and South Korea have established relatively complete regulatory policies, and holders of encryption licenses can provide encrypted financial services; in addition, Singapore and other Southeast Asian regions are relatively open to cryptocurrencies, and the financial policy burden is relatively light , a higher acceptance of cryptocurrencies.
Huobi has actively carried out overseas compliance deployment as early as a few years ago, and has also retained its strength for today's retreat.
According to the official website, Huobi Group has compliant operating entities in Japan, South Korea, Gibraltar and other countries and regions. In addition, the listed company "Huobi Technology" has obtained the No. 4 and No. 9 licenses issued by the Hong Kong Securities Regulatory Commission in July 2020, and the trust license granted by the State of Nevada in December; and was approved to issue Hong Kong's first active investment strategy in March this year. Virtual fund, Huobi Trust completed registration in Hong Kong in April.
Of course, after entering the global market, Huobi will once again face the pressure of competing products such as Coinbase and Binance. Whether Huobi can achieve leapfrog development, we will wait and see.
