Cryptocurrency exchange Huobi will stop offering crypto derivatives trading services to New Zealand clients two months after the company obtained registration and approval from the country’s regulators.

In an announcement on Tuesday (August 16, 2022), Huobi said it will restrict users in New Zealand from accessing derivatives trading services from August 23, 2022.

According to Huobi, its decision was a result of its adherence to local compliance policies.

Consequently, affected clients will not be able to use functions such as margined cash futures, options, exchange-traded products (ETP), margin trading platforms, and USDT margin contracts.

The cryptocurrency exchange also told that it will update its user agreement to add New Zealand as a “restricted jurisdiction”, allow users in the country to close their positions from August 23, and also prevent them from opening new derivative positions on the aforementioned date.

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Meanwhile, the latest development comes after Huobi obtained registration with the New Zealand Financial Services Provider Registry (FSPR) in June.

Registering with FSPR has enabled the company to operate regulated foreign exchange and money or value transfer services in New Zealand, which support off-platform cryptocurrency trading services.

Huobi founder Leon Li is looking to sell his stake in the company for nearly $3 billion.

Some of the interested buyers are rumored to be crypto celebrities, such as Justin Sun and Sam Bankman Fred.

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