Cryptocurrency exchange Huobi is to dissolve its Chinese subsidiary, originally set up to house the exchange in China, after moving its business from the country several years ago. The move sees Huobi join fellow cryptocurrency exchange OKEx in closing down its Chinese arm, following the People’s Bank of China ban on initial coin offerings (ICOs) and fiat-to-digital currency trading enacted in 2017. Huobi will join OKEx in continuing to serve the Chinese market.
Huobi moves out of China amid the government’s hostile approach toward crypto.
The crypto firm is moving out of China ostensibly to avoid the restrictive legislative climate for digital currency businesses there. According to public records in China, Beijing Huobi Tianxia Network Technology Limited shareholders passed a resolution to begin the dissolution of the company, in a process headed by the founder and CEO, Li Lin. On the announcement, the news sent the share price of another group company, Huobi Tech, down over 21%, with investors reacting to the move away from serving China from its Hong Kong base.
China clamps down further on both mining and trading activity in the country.
Huobi’s decision to move out of China comes at a time of increasing restrictions against the digital currency sector in China, with authorities clamping down further on both mining and trading activity in the country. A spokesperson for Huobi said that the decision to close down the firm was immaterial, given that the legal jurisdiction of the business had already been moved outside of China. “Huobi China has not had any business operations; it is unnecessary and has applied for cancellation,” the spokesperson said. Several other crypto companies have moved out of China amid the ongoing crackdown on the crypto industry.