The Chinese digital currency exchange Huobi is now focusing on markets outside of China after the Chinese government’s crackdown on its local exchange. Today, it launched three new tokens (Ox, Kybr, and Airswap) on its recently launched peer-to-peer global trading platform, huobi.pro.
This is the second time that Huobi has launched new tokens on its platform ,as on the 26th October it introduced Tether (USDT). Apart from these tokens, huobi.pro is also providing the trading option with its initial launches of Bitcoin, Ethereum, Litecoin, and BitConnect. Unlike its counterpart Okex, Huobi has not yet introduced any fiat trading pairs.
On September 17th, China tightened its digital currency trading rules and ordered the local authorities to close down 60 platforms which are offering ICOs. Huobi.com, the Chinese local exchange, was also on the list.
Yesterday, Huobi officially ceased all trades of digital currencies against the yuan and is now completely focusing on its global platform.
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In a statement, Leon Li, the founder of Huobi, said: “I believe that this is not only a milestone for Huobi but also a watershed in the history of Chinese digital assets and even a memorable day in the development of global digital assets.”
Following the crackdown, Chinese exchanges are relocating their operations outside China and focusing on peer-to-peer trading platforms. This will allow them to serve in the Chinese market by avoiding the strict regulations.
With 80 percent of Bitcoin transactions in yuan, China was the largest cryptocurrency market prior to the ban. The growing cryptocurrency market over the years attracted the government’s attention as no regulatory body was controlling it. The government was also concerned with increasing fraudulent activity such as money laundering and Ponzi schemes, conducted by using cryptocurrencies and initial public offerings.
The cautious nature of the Chinese government since the 2015 stock market collapse is also a factor in the tightening of the rules on the unregulated and speculative crypto market.