Huobi is one of the leading exchanges in Asia, however, it has suffered some losses over the years due to the regulation changes.
Huobi once hosted a global exchange where users from around the world had access to all of its token offerings and trading pairs. Now it is continuing to see a drop in customer base and revenue due to the changing regulatory landscape.
The first major hit to Huobi came from the US when it started cracking down on exchanges and enforcing KYC (Know Your Customer) procedures with US customers.
Huobi joined many other exchanges which created two separate platforms, one specifically for the US, named Huobi Global, and one for the rest of the world.
Unfortunately, the tokens and coins it was offering American customers were only a fraction of what the main platform held, which caused users to migrate to different exchanges.
This year was the year that the rumors circulating a cryptocurrency and mining ban in China came true. China was once a dominant force in the cryptocurrency world, at one point holding 75% of the total mining power for Bitcoin. It also had millions of cryptocurrency holders who supported many Chinese crypto projects.
The ban eliminated any hope of China being involved in cryptocurrencies. A few days after, Huobi announced it would suspend exchange-traded products and leveraged trades too, and would cease selling mining equipment inside of the country.
The market dipped heavily but has since recovered. Huobi however, is now forecasting a drop in revenue similar to what the market once saw but is not seeing any near-term recovery. Huobi and Binance were among the top trading platforms for Chinese users.
Huobi has announced its new aim to continue expanding to new countries which will likely mean more fiat pairs available. It has stated that it is still very healthy in Asia but new targets will focus on a global audience.
There are many developing countries with better crypto regulations that could take advantage of a successful cryptocurrency exchange offering local services.
Many of these developing crypto nations lack any exchange that will trade cryptocurrency into their local currency. Huobi has a chance to become the dominant exchange in these markets. Only time can tell if it can recover from its loss of customer base.
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