Crypto exchange Huobi yesterday issued an announcement in simplified Chinese saying that it would implement a “T+1” withdrawal freezing time for all over-the-counter trades, meaning that traders can transfer cryptocurrency out only 24 hours after depositing it. In some cases, the freeze will last up to 36 hours. 

Fast facts

  • OTC trades take place directly between two parties without a platform. On Huobi, they mostly involve exchanging fiat for cryptocurrency. A report on crypto crime by Chainalysis blames OTC trading for facilitating money laundering, and says Huobi received 24.7% of the world’s illicit Bitcoin in 2019.
  • As early as August last year, Huobi announced a trial of the freeze a policy on its simplified Chinese website. When users’ behavior triggers certain restrictions, they receive a warning and the platform freezes deposited cryptocurrency for at least 24 hours. In March 2021, Huobi announced that it planned to extend the policy to more users.