Huobi has announced that it has ceased its US operations. The company said in a tweet that it was done so that “it can return in a more integrated and impactful fashion as part of its ongoing strategic layout.”
The customer support center will be shut down on December 15, and all funds should be withdrawn before January 31, 2020. It’s still unknown what was the reason for such a decision.
The announcement comes just a month after Huobi announced that it will freeze all US accounts on its main Singapore-based exchange and push them to HBUS in order to be regulatory compliant. A blog post from Huobi over the weekend read as follows: “Dear Customer, we regret to inform you that HBUS will need to cease operations so that it can return in a more integrated and impactful fashion as part of its ongoing strategic layout.”
The exchange had been rattled in recent weeks by a number of key departures, including Oren Blonstein, who took over the CEO position in September but left the company in December. The previous CEO was Frank Fu, who is now a managing director at Fenbushi Capital. The most significant factor in Huobi’s US departure was the increased competition in the area of crypto exchanges.
With Binance.US making forward strides and the recent launch of Bakkt bringing in more institutional investors to the world of crypto, Huobi had struggled to generate any serious trading volume. Current volumes have dropped to around $220,000 USD per day, a rock-bottom level more suited to a small-scale exchange. HBUS trading for altcoins had dropped to almost non-existent levels, and it did not even have a significant Bitcoin (BTC) market.