Huobi Global, currently the world’s second-largest crypto exchange by daily traded volume, has introduced a 24-hour token withdrawal delay for all over-the-counter (OTC) trades. The latest decision strikes a blow to all Huobi users, some of whom will moreover be prevented from withdrawing their tokens for as long as 36 hours if the crypto exchange’s assessment system judges them to be at particularly high risk.
Huobi exchange to introduce a number of risk control strategies.
Huobi Global has said the move forms part of its attempt to “gradually introduce a number of risk control strategies encompassing a larger section of users.” It adds that it expects the delay to “effectively avoid user losses caused by the inflow of risky funds and protect the safety of users’ assets.” Since August last year, the crypto exchange giant has been implementing a narrower version of this measure when it first imposed a token withdrawal delay of up to 36 hours on specific, higher-risk users.
Huobi’s new policies align with Beijing’s ongoing crypto crackdown.
The new initiative by Huobi exchange seems to align squarely with Beijing’s ongoing and multi-pronged crackdown on the country’s cryptocurrency investors, which has recently targeted the mining sector, banking services, and crypto’s online footprint. In response to the current crypto crackdown, a large volume of crypto trading in the country has shifted to the OTC market, which is relatively unregulated and ensures that the transfer of fiat currency does not take place directly on exchanges’ trading desks. China has been cracking down on cryptocurrency lately. Recently, Beijing authorities also announced a crackdown on OTC trading. Earlier, Huobi updated its user agreement document, banning crypto derivatives trading for all existing customers in China.