Crackdown, regulatory pressures, financial restrictions, and payments ban that’s how toxic the crypto atmosphere has become in the past two months. However, there is a town point of view about the matter. Some people do believe that illegal trade without any financial transparency is a threat to society. While other groups do believe this is because authorities want to develop state-owned digital currencies hence, they need to wipe out the market competition.
At times when everybody is taking sides, it’s the crypto exchanges who are suffering loss. As a result of the intense regulatory pressure and the succumbing crypto market, Huobi revenues have dropped massively. The crypto exchange which holds a considerable position and falls in the top ten crypto exchanges seems to be a victim here.
Colin Wu, a famous journalist who covers worldwide crypto markets and trends, tweeted about this sad incident. In his tweet, he revealed that Huobi revenues dropped down to 64% as a result of the intense crackdown by the Chinese authorities. Furthermore, in another tweet, he enlightens the crypto community that Huobi gutted 3,797 million units of its native Huobi Token (HT). He further added that it seems that authorities are pinpointing the world’s top crypto exchanges across the globe on purpose. Colin Wu is not the only journalist who voiced against the unfair treatment of authorities.
Many other famous personalities have claimed that current turmoil regarding the crypto market has malign intentions. The estimated loss of Huobi is valued at around $48.601 million. Like Binance and Myriad, Huobi is targeted by the financial regulatory authorities. The native Chinese firm moved its operations out of China and settled in Seychelles. However, the host country did not go easy on the firm and warned the investors against the crypto exchange.
In June, Huobi announced 10 locations that will restrict the trading of derivatives on its platform. The exchange banned countries like Mainland China, the UK, Iraq, Bangladesh, Israel, and Taiwan to use its platform in order to carry out derivatives trade. Binance and Coinbase are also struggling to find their feet. On the other hand, Financial Regulatory authorities said that they are only targeting those operations which are non-registered and suspicious.
These regulations have also halted down the value of Bitcoin as well. Bitcoin mining in China succumbs. Except for Huobi, Binance seems to be the worst as the company’s operations got banned in various countries.
Despite the fact that crypto exchanges have suffered a lot. But crypto analysts are hopeful that Huobi and other exchanges will bounce back due to increasing popularity among people. Experts further added that once miners settle in various locations all the fuss will be cleaned.