Huobi Korea Stops Trading Virtual Assets, Citing Concerns About the Business

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Last Updated on January 4, 2024 by Bitfinsider

Huobi Korea has announced the discontinuation of its local virtual asset trading services in a calculated move. The official notification on its website states that the termination is set to take place on January 29, which raises questions about the state of the sector at large.

This choice, which is a component of the exchange’s larger plans for system upgrades and brand rejuvenation, is explained by the changing nature of the industry.

This audacious action is consistent with the exchange’s proactive efforts to adjust to shifting market conditions. Huobi Korea is demonstrating its dedication to providing improved virtual asset exchange services by not only restricting certain services but also going through system upgrades and brand renewal.

In addition to thanking its devoted clientele, the company expressed remorse for having to cut off services to individuals who had been users for a long time. Huobi Korea promises its users that the withdrawal of assets will continue to be supported without any interruptions despite this change. It is recommended for customers to sell their virtual and Korean Won (KRW) holdings.

Significant changes have recently occurred in Huobi Korea, coinciding with the news of this termination. The exchange had already started to function separately from its parent business, Huobi Global, the year before. A clear change in ownership occurred when Chairman Cho Kook-bong purchased the majority of the shares.

Huobi Korea published a “proof of reserves” that showed a strong reserve ratio of 101%. This was also the reason behind the company’s decision to stop offering virtual asset trading services. This action was taken soon after the FTX cryptocurrency exchange crashed, possibly in response to industry worries about the viability of cryptocurrency businesses.

Huobi Korea intends to reenter the market in the future by introducing fresh blockchain services and business models. The exchange has shown a strategic approach to maintaining its place in the constantly changing cryptocurrency market through its resilience and adaptability in the face of industry obstacles.

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