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Huobi exchange winds down entity in China

Crypto ban

TL;DR Breakdown

  • Huobi exchange wind down firm in China
  • Winding down does not affect crypto rading on the platform
  • China stringent crypto regulation may be responsible for Huobi winding down

Stakeholders of Chinese crypto firm, Huobi exchange has resolved to dissolve the entity since it came into existence in 2013.

The firm’s decision, which is based in China, is believed to be due to stringent crypto regulation by government authorities in the country.

Huobi exchange is undoubtedly one of the leading exchange firms. The exchange has been recurrently rated in the top five for the market cap. It is also known for the total number of cryptocurrency trading pairs available, which is approximately 400.

It filed to dissolve its entity based in China according to a public document in Chinese business registration archives dated July 22.

The firm operating under the name Beijing Huobi Tianxia Network Technology Limited would begin liquidation processes immediately under Li Lin, founder, and CEO of Huobi Group, who also controls Beijing Huobi.

Huobi exchange liquidation has led to an uproar in China since it caught the public glare on Tuesday with the shares of Huobi Tech, another Hong Kong-listed subsidiary of Huobi Group owned by Li, plummeting by 21.8 percent.

The dissolution of Huobi exchange comes exactly one month after rival exchange OKCoin also filed for dissolution in China.

As Huobi exchange winds down, what next?

In the exchange’s announcement, creditors of the firm are told to declare their claims to the liquidation team within 45 days from the announcement date.

It is worth noting that Huobi exchange liquidation in China won’t affect its crypto trading services because it moved its exchange businesses out of China years ago. Reportedly, it is based in Seychelles.

Outside Huobi and OKex to have moved out of China, Bobby Lee, who operated China’s first crypto exchange BTCChina, announced a shutdown of crypto-trading operations in the country is imminent.

This is in the wake of stringent crypto regulation by Chinese authorities as China’s Central Bank shut down a company that provides services for cryptocurrency transactions very recently.

Muhaimin Olowoporoku

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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