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Crypto ban in China leads to revenue losses for Huobi Global



China recently imposed a strict ban on all private cryptocurrencies. Those affected also include Huobi Global - one of the largest crypto exchanges in the world.

However, the company criticized the ban on the grounds that it would wipe out almost a third of its revenues. Huobi Global is committed to entering new markets to fuel its growth.

Due to China's crypto ban, Huobi Global is forced to forego almost 33% of its revenue and lose (and stop doing business with) its customers in China.

In order to get the losses under control, Huobi is looking for a new location in other financial centers and justifies the step with the global effects of China's “recalcitrant” decision.

Huobi is discontinuing the service for Chinese users

Du Jun, co-founder of Huobi Global, said that all Chinese users would be banned from access to the crypto services.

There will be no Chinese users on the platform from late September to December 31st ... so our revenue in China will drop to zero.

The company is one of the many crypto exchanges in the world that have benefited from soaring Bitcoin prices since March last year. A series of new all-time highs have turned Coinbase, FTX, Huobi, and other exchanges into multi-billion dollar companies.

Jun revealed that 70% of his company's earnings are bunkered overseas. He added that he is also accelerating his efforts to expand into other global markets - increasing his company's workforce worldwide from the current 1,000.

We feel very comfortable in Asia (especially the Seychelles) and are leaders here, but we need a new focus, we have to go global.

Regulations force Huobi to expand global activities

The changed regulation in China is forcing Huobi to expand its global activities. The company is aggressively targeting crypto clients in Latin America, Turkey, and Russia. It also targets large investors in the US and Europe.

According to the data platform Global was on the Huobi cryptocurrencies worth nearly 211 billion US dollars handled, a decrease of 74% since the crypto ban in May.

It is a private crypto exchange with no direct relationship to the Hong Kong-listed Huobi Technology Company, which is responsible for asset management and offers crypto funds. But Jun says the company's founder is a shareholder in Huobi Global.

China was the prime mining and crypto trading location until 2018 when the overwhelming dominance of the Bitcoin markets collapsed thanks to the imposition of bans and stricter supervisory rules.

In October this year, a series of new regulations finally culminated in China's ban on all digital assets. The US is now the largest crypto mining center in the world.

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