After Binance, Huobi Is No Longer Serving Canada-based Users; ED Sends Notice to WazirX

Cryptocurrency exchange Huobi is no longer serving its Canada-based users and has given them until this year-end to close their position and withdraw their crypto assets. Huobi’s message to its users reads,

“Regrettably, we can no longer provide services for Canada-based users due to compliance reasons. If you are one of them, please close out all active positions and withdraw all assets before Dec 31, 2021.”

Recently, Huobi Global updated its User Agreement and restricted retail users in mainland China, Taiwan, China, Israel, the UK, and several other countries from using the “derivatives trading” services provided by them.

Additionally, users from Canada, along with the United States, Hong Kong, Japan, Cuba, Iran, North Korea, Sudan, Syria, Venezuela, and Crimea, were also restricted.

Previously, the exchange temporarily ceased the intake of users with Canadian KYC or a Canadian IP address.

Now, to comply with Canadian law, the country is part of restricted jurisdictions.

Last month, Binance also restricted its services for users in Ontario, Canada, due to its “compliance efforts,” as the leading cryptocurrency exchange faces regulatory scrutiny from all over the globe.

Navigating this regulatory minefield is its biggest task ahead, said chief executive and founder Zhao Changpeng in an interview with The Straits Times. For this, Binance has to tailor its processes to suit the different demands that different jurisdictions are putting in place.

Binance-owned crypto trading platform WazirX also received a show-cause notice from the Directorate of Enforcement (ED) this week for allegedly violating the Foreign Exchange Management Act in relation to transactions worth 2,790.74 crore rupees (about $372 million).

ED questioned the Indian-based exchange’s capability to allow users to make cross-border payments without direct oversight of regulators.

“These were carried out in violation of forex rules. WazirX’s platform allowed clients to transfer cryptocurrencies without proper documentation, making it a route for laundering.”

“One needs to be sure that this money isn’t cheap money (cheap money is low-interest loan) or dirty money (used for illegal activities).”

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