Huobi Closing Beijing Entity Due to China Crackdown
Chinese crypto exchange Huobi has dissolved entity, Beijing Huobi Tianxia Network Technology Co., Ltd. on July 22, according to a notice posted on China’s national enterprise system.
The firm, established by Huobi Group Founder and CEO Li Lin in late 2013, will deregister it in 45 days. Li also heads the liquidation team, to whom creditors should declare their claims within that 45-day time frame. The entity has 10 million yuan ($1 million) in registered capital and a total of five subsidiaries.
Exchanges extinguished
This decision obviously comes amidst Chinese authorities’ crackdown on cryptocurrency trading and mining. Apart from mining operations, which are being duly suppressed, other crypto exchanges are feeling the squeeze.
For instance, South Korean crypto exchange OKEx dissolved its China-based entity called Beijing Lekuda Network Technology Co., Ltd. on June 24. OKEx founder Mingxing Xu is overseeing the liquidation and clearing process for the company.
Huobi and OKEx have both dealt with a proscriptive Beijing before, relocating overseas after authorities’ 2017 crackdown on crypto. Additionally, OKCoin’s Beijing entity also filed for dissolution last month, while one of China’s oldest exchanges BTC China announced it would halt trading.
Chinese crypto crackdown
Earlier this year, Chinese authorities banned banking and payment institutions from providing services for crypto-related businesses. They said that cryptocurrencies disrupt the normal economic and financial order, while “seriously infringing on the safety of people’s property.”
Shortly thereafter, authorities turned their attention to cryptocurrency mining, as mentioned above. Their given reason was to protect the country’s financial system while reducing carbon emissions. Once nearly accounting for 70% of global mining of bitcoin, China’s ban has inevitably led to a mass exodus.
Despite its draconian reversal towards Bitcoin and cryptocurrencies, China is very enthusiastic about their underlying blockchain technology. China is also among the most advanced in the world in terms of the development of its central bank digital currency (CBDC). To this end, it hopes to be the most advanced country in the world for blockchain technology by 2025.
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