In a blog post, the world’s third-largest cryptocurrency exchange by trading volume, Huobi Global, announced that it had been steadily disabling the accounts of its U.S. customers. Now, the firm plans to cut off all the remaining U.S. accounts on Nov. 13. The decision was made to comply with U.S. laws and regulations based on the company’s user agreement.
“In line with the laws and regulations of the United States with respect to crypto-assets, our User Agreement expressly prohibits users in the United States from using our platform. For that reason… we will freeze all US user accounts from 13 November 2019 (GMT+8) onwards,” reads the announcement.
The Singapore-based cryptocurrency exchange also asked its users to return borrowed funds in margin trading and to withdraw all assets. Despite disabling U.S. based customer accounts, the firm does not plan to exit the U.S. market.
Huobi Global is encouraging its customers to migrate to its exclusive U.S. strategic partner, HBUS, a cryptocurrency exchange dedicated to serving American customers. The San Francisco-based exchange operates independently from Huobi Global, including running its own order book. Last year, the company made sure to emphasize in a Medium post that it is a separate entity.