The move is less likely to affect the company’s business since it had shifted the exchange overseas a long while ago. A month ago, OKCoin had announced a shutdown of its entity in the country as well.
Huobi, the Seychelles-based cryptocurrency exchange is disbanding its entity called Beijing Huobi Tianxia Network Technology Co., Ltd. The notice that went up on July 22 said that the deregistration process will be completed in 45 days. According to the company’s spokesperson, the dismantled entity was established in the “nascent stages of development” and “has not had business operations”. Li Lin, the founder and Chief Executive Officer of Huobi Group has been named as the person in charge of the liquidation process of the entity in China.
Established in 2013, the company’s cryptocurrency exchange has an acknowledged standing in the market, especially in Asia. The exchange has been recurrently rated in the top five for the market cap. It is also known for the total number of cryptocurrency trading pairs available, which is approximately 400. It provides a token that can be exchanged for other crypto assets on its platform. According to the firm’s information platform Aiqicha, the entity in China has $1.54 Mn in registered capital and five subsidiaries in China. Leon Li, the co-founds claims the ownership of 70.52% of the entity.
The news of the dissolution did not catch the public’s eyes until Tuesday when the Chinese media began discussing it on their trading platforms. Consequently, the share price of Huobi Tech, an investment holding company acquired by Huobi Group tanked to 21.88% during the trading hours on Tuesday.
Despite the liquidation of its entity in China, the firm won’t suffer any major consequences as it has already shifted its business out of China a long while ago. The news comes after the Chinese authorities have been clamping down on all crypto mining operations in the country following the recent ban. Several crypto fields, like exchanges and media platforms, have been hard hit by the ban.
A month ago, Huobi’s rival exchange OKcoin filed for dissolution due to the disruption of all crypto-practices in China. Founded in 2012, OKCoin was caught up in a legal battle with Huobi that resulted in a ban on initial coin offerings and centralized fiat-to-crypto trading in 2017. Both the firms in China, OKEx and Huobi had migrated their exchange businesses abroad, still retaining a major chunk of its user base in China itself. Several employees of the group remained in China while working for the company’s entities in foreign lands.
Recently, BTC China, which is the oldest exchange in China, also announced a shutdown of crypto-trading operations in the country.
Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.