Huobi restricts the cryptographic washout trade after the Bitwise report
Huobi Global said it does not participate in any laundering operation, and has taken measures to discourage such activity following a report that implies that the encryption data exchange reported a volume of false transactions, meaning that they make fictitious sales / purchases, damaging honesty and generating traffic that does not exist, everything aims to create an unwanted bubble.
Livio Weng, CEO of Huobi Global, told CoinDesk through a spokesperson that the exchange “is not involved in any laundering operation” and that such actions would go against the “fundamental values” of the exchange. Otherwise, a lot of control is needed with the actors involved in this bad practice.
A report from Bitwise Asset Management implied that Huobi reported that the inflated volume of operations “surprised” his team, he said, and that the exchange “subsequently conducted a comprehensive review and control of our system.” This indicated calls the attention of the users.
Likewise, Huobi did not find any evidence of systematic abuse, he said, but added:
“We identify some of our creators or market promoters who perform what we suspect may have been the laundry trade for performance and marketing reasons. We have already communicated with these market makers and have abandoned the strategies in question. “
Huobi is now in the process of updating its policies to avoid future laundry operations problems, he added. Huobi did not immediately respond to a request for more details.
The washing trade occurs when the participants conspire to sell an asset from one place to another at increasingly higher prices, creating the illusion of a rising market.
In a report published in March, Bitwise said that Bitfinex, BitFlyer, Binance, Bitstamp, Bittrex, Coinbase, Gemini, itBit, Kraken and Poloniex were the only exchanges that seemed to inform genuine trade volumes, citing under arbitrage in these exchanges, as well. as its reported volumes compared to the market in general.
The asset management firm, which seeks approval from the US Securities and Exchange Commission. UU (SEC) to launch a bitcoin exchange fund (ETF), published another report on Friday, in which it noted that at least one exchange, Huobi, had begun to report. Different volumes of trade within a few weeks of your initial report.
Huobi had an “anomalous pattern” according to an analysis of his reported operations, which indicated a “resurgence of large trade volumes,” according to the new report.
This pattern was “consistent” until the initial Bitwise report was published. “Then it disappeared completely in three weeks.”
Bitwise could not explain why the volume of trade reported changed, although the new report suggested that “those who participate in the washing trade in Huobi changed the size of their signatures to be more in line with our detection methods.”
Bitwise added. “We also recognize that Huobi could have taken steps to clean up the washing trade on its platform within that time frame, but that opinion is challenged by the fact that the volume of bitcoin trade reported by Huobi did not decrease significantly during that time”. Reference: coindesk.com
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