The Twitter account of Huobi has vanished recently, but it is back online, and according to the exchange, everything has been restored to normal. The cause for the vanishing of the account was an unauthorized attempt to get into it, as the exchange stated in a Twitter update. It further mentioned that surely there are rumors about the crypto world, but Huobi gives you surety that it operates legitimately and devises the standards for the protection of the assets of the consumers.
At the time when the company’s account vanished, many of the people thought that Seychelles made some contribution in the matter. However, Houbi had been entangled in the crosshairs of the regulators of the territory. Hong Kong (considered as an autonomous territory) has been conducting crackdowns on the crypto simultaneous to Beijing. Nonetheless, the restriction imposed by Hong Kong is only on professional investors. A statement that has been publically shared by Huobi is that it opens its gates to all and sundry, although the company is registered under Seychelles.
It has been mentioned by a source relating to an Asian-based research firm while discussing Blockworks that the Chinese regulators have been interested in the extent of leverage provided to the users. It further disclosed that the fresh customers who presently exist on the platform are not capable of trading the derivatives obtained as the leverages, and the remaining clients can use the maximum of leverage’s 5x and not more. Another thing revealed by the source is that a lot of stress has been put on the exchange because of the volatility of the market, and there are some problems faced by the customers in the procedure of withdrawals.
It has been denied by Hong Kong’s Monetary Authority, its central bank, its market regulators, as well as its Securities and Futures Commission to speak anything about the in-between investigation about Huobi. Further, the authorities have not yet publicly announced any law-enforcement action to be taken against the exchange.
Recently this month, it has been ordered by the securities regulators of Thailand (being a branch of the wide-ranged crackdown conducted by the country) to cease the activities of Huobi until its organizational structure is not cleared to be legitimate, and it is complying with the regulatory standards defined by the local authorities.