New Zealand

Binance launches New Zealand-based offices following regulatory approval

New Zealand lawmakers and regulators largely have not imposed strict guidelines for crypto firms to operate in the country, nor for Kiwis to use cryptocurrencies freely.

Global cryptocurrency exchange Binance has registered with New Zealand’s Ministry of Business, Innovation and Employment and opened local offices in the country.

In a Sept. 29 tweet, Binance said it was registered as a financial service provider in New Zealand, allowing residents to access services including spot trading, nonfungible tokens and staking. The move to the crypto-friendly Pacific nation followed regulators in Dubai, Abu Dhabi, Kazakhstan and Italy giving the green light for Binance to open an offshoot.

“New Zealand is an exciting market with a strong history of fintech innovation,” said Binance CEO Changpeng Zhao.

New Zealand lawmakers and regulators have largely not imposed strict guidelines for crypto firms to operate in the country, nor for Kiwis to use cryptocurrencies freely. The country’s tax authority said in 2019 that income from crypto was legal, and the Reserve Bank of New Zealand has been exploring the potential benefits and risks of a central bank digital currency.

In June, Huobi Global secured registration as a registered financial service provider in New Zealand but later suspended its derivatives trading services for residents, citing compliance with local regulations. With a population of roughly 5.1 million, New Zealand is a smaller market compared with that of its neighbor Australia, where a reported 4.2 million people own crypto.

Related: Aussie banks ANZ and NAB won’t ‘endorse’ retail speculation on crypto

Though expanding to many countries around the globe, Binance has still been the target of some regulators. In July, the Netherlands’ central bank fined Binance Holdings $3.3 million for offering crypto services without registering. The firm also formed a task force called the Global Advisory Board on Sept. 22 aimed at tackling regulatory issues related to crypto, blockchain and Web3 adoption.

Huobi Global suspends derivative trading in New Zealand

Huobi Global claims compliance with local regulations as its reason for excluding New Zealand from its list of countries in which it operates derivatives trading.

Crypto exchange Huobi Global announced the suspension of derivatives trading in New Zealand. The statement from Huobi said the new restrictions against derivative offers are in light of compliance with local regulations. 

Users in New Zealand will no longer have access to derivative trading services, which include coin-margined futures and swaps, USDT-margined contracts, options and exchange-traded products (ETPs).

The new restrictions will take effect on Aug. 23, 2022. On the same day, Huobi Global will no longer accept users with New Zealand Know Your Customer (KYC), along with IP addresses from the area. Users wishing to close out active positions can do so only on and after the effective date of the restrictions.

Cointelegraph reached out to Huobi Global for a comment on the development.

Huobi has a growing list of restricted countries, including 11 jurisdictions unable to access any of its services. Locations such as the United States, Canada and Japan fall into this category. At the same time, places like mainland China, Taiwan and the United Kingdom are unable to access derivative trading.

Related: Uzbekistan blocks access to foreign crypto exchanges over unregistered trading

This comes shortly after reports of Huobi co-founder Leon Li wanting to sell a majority stake in the company. The stake has a value of over $1 billion. Founded in 2013, Huobi Global handles more than $1 billion in volume of daily trades. 

Despite this development in New Zealand, the company has recently made moves toward expanding its offerings in other regions. In early August, Huobi received the green light from Australian regulators, a neighboring country of New Zealand, to be an exchange provider.

In the United States, Huobi secured its FinCEN license this past July. A subsidiary of the company called HBIT received its Money Services Business (MSB) license from the United States Financial Crimes Enforcement Network (FinCEN).

All these developments come as Huobi launched a $1 billion investment initiative with a focus on decentralized finance (DeFi) and Web3 expansion.

Huobi Global suspends derivatives trading in New Zealand

Huobi Global claims compliance with local regulations as its reason for excluding New Zealand from its list of countries in which it operates derivatives trading.

Crypto exchange Huobi Global has announced the suspension of derivatives trading in New Zealand. The statement from Huobi said the new restrictions against derivatives offers are in light of compliance with local regulations. 

Users in New Zealand will no longer have access to derivatives trading services, which include coin-margined futures and swaps, Tether (USDT)-margined contracts, options and exchange-traded products.

The new restrictions will take effect on Aug. 23. On the same day, Huobi Global will no longer accept users with New Zealand Know Your Customer-verified location, along with IP addresses from the area. Users wishing to close out active positions can do so only on and after the effective date of the restrictions.

Cointelegraph has reached out to Huobi Global for a comment on the development.

Huobi has a growing list of restricted countries, including 11 jurisdictions unable to access any of its services. Locations such as the United States, Canada and Japan fall into this category. At the same time, places like mainland China, Taiwan and the United Kingdom are unable to access derivative trading.

Related: Uzbekistan blocks access to foreign crypto exchanges over unregistered trading

This comes shortly after reports of Huobi co-founder Leon Li wanting to sell a majority stake in the company, valued at over $1 billion. Founded in 2013, Huobi Global handles more than $1 billion in daily trading volume. 

Despite the development in New Zealand, the company has recently made moves toward expanding its offerings in other regions. In early August, Huobi received the green light from Australian regulators, a neighboring country of New Zealand, to be an exchange provider.

In the United States, Huobi secured a Money Services Business license from the U.S. Financial Crimes Enforcement Network in July via a subsidiary of the company called HBIT.

These developments come amid Huobi launching a $1 billion investment initiative with a focus on decentralized finance and Web3 expansion.