The Seychelles-based cryptocurrency exchange Huobi reportedly intends to liquidate Beijing Huobi Tianxia Network Technology, which operates in the Chinese market
Chinese media have reported that the Huobi crypto exchange is liquidating its Beijing company. The shareholders of the Beijing company agreed about a week ago to dissolve the company. The stakeholder communication only hit the headlines yesterday, despite being drafted on July 22nd.
Beijing Huobi Tianxia Network Technology company has five subsidiaries and registered capital of US $ 1 million. Huobi joins Beijing Lekuda, which was founded by Star Xu, who also serves as the OKEx head of the South Korean crypto exchange, which filed for liquidation in late June.
The move will have no impact on crypto trading services as Huobi pulled its exchange arm out of the Chinese market back in late 2017. This was after the Chinese government banned trading on crypto exchange platforms. China has been particularly strict on regulating crypto mining as well as trading in the country.
In the past two months, Chinese authorities have shut down several mining companies in different provinces and restricted the activities of other crypto companies. The wave began with banks and other financial institutions being banned from offering services to companies in the cryptocurrency sector. Authorities argued that crypto would have a negative impact on the country’s economy. The wave then shifted to crypto mining companies, this time authorities said their actions were to protect the environment by reducing emissions.
Many mining companies closed while others began to migrate to other regions. BTC China, China’s longest-running cryptocurrency exchange, closed store last month, citing increased regulatory pressure from the government. Bishijie, an investment community and digital currency information provider, announced about two weeks ago that it will be closing and discontinuing its app and website services in mainland China.
A company representative announced that the Beijing-based company hadn’t seen a lot of business, which led to the exit. The notice posted on China’s National Enterprise System stated that the Beijing company would deregister within 45 days. Huobi did not provide any specific information about the employees based in China. A company statement reiterated Huobi’s intentions to reach other markets outside the region.
“Not only is Huobi able to better serve the needs of its many international users, but it believes that doing so will improve its ability to ensure business continuity around the world.”
However, China remains one of the leading nations in terms of blockchain technology despite its tough stance on cryptocurrencies.