After the intensified campaigns against businesses related to bitcoin and other digital tokens, crypto-exchanges are distancing themselves from Beijing. Following this, Huobi and OkCoin will shut down their respective subsidiaries in Beijing.
China’s crypto crackdown is intensifying with an increasing shutdown of mining operations, and the miner’s migration. The Chinese Central Bank has also imposed a ban on the operations of companies involved in crypto trading. China’s government is also moving rapidly towards introducing China’s Central Bank Digital Currency as a replacement for the decentralized system of cryptocurrencies.
Beijing Huobi Tianxia Network Technology Co. dissolved its registration last week. It informed the investors to liquidate their accounts within the next 45 days. This announcement was instead of “resolution of dissolution”. The announcement was made public through the National Enterprise Credit Information Publicity System’s website.
Huobi’s Beijing subsidiary had remained a non-operational franchise for years and did not bring in much or any revenue. “Because this entity has not had any business operations, it was deemed unnecessary, which led to its cancellation,” a Huobi representative told South China Morning Post. After the shutdown, Huobi now remains with only 1/4th of its active subsidiaries.
OKCoin’s Beijing entity also filed for dissolution and announced it is shutting down crypto trading in the country in June. On the dissolution of OKCoin’s Beijing subsidiary, a representative of Beijing Lekuda said the move was part of its “normal adjustment of operational entities”.