Last month, Huobi announced that they will be exiting the US markets to a certain degree following some regulatory challenges within that environment. They also announced that they would be freezing all US customer accounts beyond a certain date and directed people to make use of a new service called HBUS which would be a standalone arm of the company that would serve the US market. This, for many, showed, the consequences of a hostile regulatory environment towards cryptocurrency but also show the resilience to hold onto the US market which is a rather profitable one within the crypto industry.
Unfortunately, it has been announced on December 9, 2019, that HBUS, which had been created as an alternative to serving customers of who will be within the US market, will be shutting down its operations.
The news has been confirmed by Huobi themselves and comes as a significant blow to its US customer base.
“We regret to inform you that HBUS will need to cease operations so that it can return in a more integrated and impactful fashion as part of its ongoing strategic layout,” the announcement says.
Despite the exit of the US market, Huobi has continued to expand into other regions as they launched in both Argentina and Thailand this year and have announced that they will be opening a gateway for trading with the Turkish lira. While it is not unusual for crypto businesses to exit a market due to regulatory issues such as what occurred in India, the US is considered a very tech progressive state and it is interesting that a crypto firm would choose to exit the market for this reason.
However, when the announcement of the freezing of US customers’ accounts was made earlier this year, there were still hopes of a continued presence within the United States thanks to HBUS, but that also seems to have fallen by the wayside. It is unknown whether Huobi will never make a re-entrance into the US Crypto scene and if other exchanges will follow suit in departing the market.