Seychelles-based cryptocurrency exchange Huobi has moved to dissolve its Beijing unit, Huobi Tianxia Network Technology, which operated in the Chinese market
According to Chinese media reports, Huobi is closing its Beijing affiliate. Stakeholders of the Beijing entity reportedly agreed to dissolve the company about a week ago. The notice they filed, dated July 22, only appeared in the headlines yesterday.
Beijing Huobi Tianxia Network Technology owns five subsidiaries and had registered capital of around one million dollars. With this move, Huobi joins other firms that have wound down China-based operations, such as Beijing Lekuda, founded by Star Xu (leader of the OKEx exchange), which filed for dissolution at the end of June.
This dissolution will not affect Huobi’s cryptocurrency trading services, since the exchange withdrew its mainland China trading operations in late 2017 after the Chinese government banned crypto exchange trading. China has maintained strict regulation on cryptocurrency mining and trading within its borders.
Over the past two months, Chinese authorities have forced the closure of several mining companies across multiple provinces and restricted the activities of other industry participants. The crackdown began when banks and financial institutions were prohibited from offering services to cryptocurrency-related companies, a measure authorities justified by citing potential negative effects on the national economy. The campaign later expanded to mining operations, with regulators framing restrictions as part of efforts to protect the environment and reduce CO2 emissions.
As a result, additional mining firms were shuttered, while others relocated to different regions. BTCChina, the country’s longest-running crypto exchange, ceased operations last month, citing mounting regulatory pressure from the government. About two weeks ago, Bishijie — a crypto information provider and community platform — also announced it was suspending services and shutting down its app and website in mainland China.
A company representative said the Beijing unit had seen limited business activity, a factor that contributed to Bishijie’s exit from the market. The official notice filed in China’s national enterprise system states the Beijing entity will be deregistered within 45 days. Huobi has not disclosed specific details about employees in China. The company’s statement reaffirmed its intention to expand and operate in markets beyond the region.
“In addition to better serving the needs of many international users, Huobi believes this will also improve its ability to maintain global business continuity.”
Despite its stringent stance on cryptocurrencies, China remains a leading country in blockchain technology development.