Huobi Shuts Down Beijing Entity Amid Crypto Crackdown
The company said it's an old entity that isn't in use anymore.
Jul 27, 2021 at 7:56 a.m. UTCUpdated Aug 21, 2021 at 6:32 p.m. UTC
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Chinese crypto exchange Huobi is the latest crypto exchange to make changes to its corporate structure in China.
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- Huobi dissolved an entity called Beijing Huobi Tianxia Network Technology Co. Ltd. on July 22 and will deregister it in 45 days, a notice posted on China's national enterprise system said.
- The dissolved entity was set up "in the early stages of development" and "has not had business operations," a company spokesperson told CoinDesk via WeChat.
- Leon Li, the founder and CEO of Huobi, owns 70.52% of the entity, according to company information platform Aiqicha. Li is named as the contact person for any creditors wishing to file liquidation claims before the entity is deregistered.
- The Chinese characters for Huobi appear to be censored on the company information platform, as they have been on social media since June.
- The entity has 10 million yuan ($1.54 million) in registered capital and five subsidiaries in China, according to Aiqicha.
- Chinese authorities have been cracking down on the local crypto mining industry. Other crypto fields appear to be hit as well, including exchanges and media platforms.
- Huobi stopped offering leverage trading to users in China in late June.
- Huobi Technology stock has fallen more than 15% since markets opened in Hong Kong today. Huobi Tech is an investment holding company that has some of the same shareholders, a CEO and some branding as Huobi Group, but the two are not formally affiliated. Huobi Group is the parent company of the exchange Huobi Global.
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