Seychelles-based cryptocurrency exchange Huobi is reportedly looking to dissolve the Beijing Huobi Tianxia Network Technology entity that operates in the Chinese market
Chinese media have reported that crypto exchange Huobi is dissolving its entity in Beijing. The stakeholders of the Beijing entity already agreed to dissolve the firm about one week ago. The notice sent by the stakeholders did not make headlines until yesterday despite being drawn up on July 22.
The Beijing Huobi Tianxia Network Technology company has five subsidiaries and a registered capital equivalent to $1 million. Huobi joins Beijing Lekuda, founded by Star Xu, who doubles up as South Korean crypto exchange OKEx head, which filed for dissolution at the end of June.
The move won’t have any impact on crypto trading services as Huobi already pulled its exchange arm out of the Chinese market at the end of 2017. This was after the Chinese government outlawed trading on crypto exchange platforms. China has been particularly strict on regulating crypto mining as well as trading in the country.
In the last two months, Chinese authorities have shut down several mining firms in different provinces and restricted the activities of other crypto firms. The wave started with banks and other financial institutions being proscribed from offering services to firms in the cryptocurrency sector. The authorities argued that crypto would negatively impact the country’s economy. The wave then shifted to crypto mining firms, this time authorities stating that their actions were meant to protect the environment by lowering emissions.
This was followed by the closure of many mining businesses while others participated in an exodus to other regions. BTC China, China’s longest-running cryptocurrency exchange, shut up shop last month, citing the increased regulatory pressure from the government. Bishijie, a digital currency investment community and information provider, also announced it was closing down and halting its app and website services in mainland China about a fortnight ago.
A representative from the firm revealed that the Beijing entity had not seen a lot of business activity, prompting the exit. The notice posted on China’s national enterprise system detailed that the Beijing entity will deregister within 45 days. Huobi didn’t divulge any specific details in regards to the employees based in China. A statement from the company reasserted Huobi’s intentions of reaching other markets beyond the region.
“In addition to allowing Huobi to better service the needs of its many international users, Huobi believes that by doing so, it will also improve its ability to ensure business continuity worldwide.”
China, however, remains one of the leading nations in terms of blockchain technology, notwithstanding its tough stance on cryptocurrencies.
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