China’s Pressure Makes Huobi Lose $500 Million

It appears China’s hostility towards the crypto industry is not limited to Bitcoin mining alone. According to a tweet from a foremost Chinese journalist covering the Blockchain industry, Colin Wu, one of the leading exchanges in the Asian country, Huobi, is facing huge financial losses due to the regulatory pressure being heaped on it by the authorities of the country.

Per Wu’s tweet, Huobi lost as much as 64 percent of its revenue for the month of June alone. He further revealed that the exchange has also lost $500 million worth of USDT from its reserves since April. All of these losses according to Wu was caused by the regulatory pressure the platform was facing from the authorities.

Earlier in the year, the exchange was forced to block some of its Chinese customers from having access to some of its services. A statement released by the exchange then had said that “due to recent dynamic changes in the market, in order to protect the interest of investors, a portion of services such as futures contracts, ETP, or other leveraged investment products are temporarily not available to new users from a few specified countries and regions.”

Not only that, the clampdown on Bitcoin mining by the country has also made the exchange halt the operations of its mining pool. The exchange had said it was putting an end to that division of its operation because it wanted “to focus on the expansion of [its] overseas presence.”

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