Seychelles-based crypto exchange Huobi renewed user conditions. The new terms define that users in China won't be able to purchase derivatives anymore.
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However, Chinese customers can continue to use the network for spot trading.Note that spot trading refers to the operation type when the purchase and settlement of financial crypto assets happen immediately. In the case of derivatives trading, buying and selling of contracts take place in the stock space. They make it possible to gain profits by predicting the future price ups and downs of the definite asset.
Several days ago, Huobi decreased the sizes of leverage accessible to users in China from 125X to 5X. Besides, it blocked new clients in China from derivatives access.
These changes are connected to regulatory issues.In May, China stated that financial establishments and payment operators of the country were disallowed to deliver services concerning crypto activities. Later, the government reiterated the crypto purchasing and mining ban.