Huobi shuts down Beijing entity due to China’s crackdown on China

Chinese cryptocurrency exchange Huobi dissolved the entity, Beijing Huobi Tianxia Network Technology Co., Ltd. on July 22, according to a notice. up-to-date on the national Chinese enterprise system.

company, founded by Huobi Group founder and CEO Li Lin, in late 2013, will cancel it within 45 days. Li also heads the settlement team, to which creditors are expected to declare their claims within that 45-day period. entity has 10 million yuan (1 million US dollars) of registered capital and a total of five subsidiaries.

Extinct exchanges

Obviously, this decision comes amid the Chinese authorities’ crackdown on cryptocurrency trading and mining. Aside from mining operations, which are duly suppressed, other cryptocurrency exchanges are experiencing a contraction.

For example, South Korean cryptocurrency exchange OKEx dissolved its China-based entity called Beijing Lekuda Network Technology Co., Ltd. on June 24. OKEx founder Mingxing Xu oversees the company’s liquidation and clearing process.

Huobi and OKEx grappled with a proscriptive Beijing previously, moving abroad after authorities cracked down on cryptocurrencies in 2017. Additionally, the OKCoin entity in Beijing also filed for dissolution last month, while one of the China’s oldest exchanges, BTC China, announced that it would be delisting.

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Crackdown on Chinese cryptocurrencies

Earlier this year, Chinese authorities banned banking and payment institutions from providing services for cryptocurrency-related businesses. y claimed that cryptocurrencies disrupt the normal economic and financial order, while “seriously violating the security of people’s property.”

Soon after, the authorities turned their attention to cryptocurrency mining, as mentioned above. His motivation was to protect the country’s financial system by reducing carbon emissions. Once nearly 70% of the world’s bitcoin mining, China’s ban has inevitably led to a mass exodus.

Despite its draconian turnaround against Bitcoin and cryptocurrencies, China is very excited about its core blockchain technology. China is also among the most advanced in the world in terms of developing its central bank digital currency (CBDC). To that end, it hopes to be the world’s most advanced country in blockchain technology by 2025.


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