Huobi Shuts Down Beijing Entity Amid Crypto Crackdown
The company said it's an old entity that isn't in use anymore.
:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/SAJ2N3OFGFGF7N2WJXNKYU7IWI.jpg)
/arc-photo-coindesk/arc2-prod/public/LXF2COBSKBCNHNRE3WTK2BZ7GE.png)
Chinese crypto exchange Huobi is the latest crypto exchange to make changes to its corporate structure in China.
- 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.
Disclosure
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish, a cryptocurrency exchange, which in turn is owned by Block.one, a firm with interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets including bitcoin and EOS. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.
Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.