Huobi winds down former exchange operator in China

Huobi’s move follows a similar decision by crypto exchange OKEx, which resolved to dissolve its China-based entity in late June.

Stakeholders in the Chinese firm that was founded to operate cryptocurrency exchange Huobi have resolved to dissolve the entity, according to publicly available records.

The firm, Beijing Huobi Tianxia Network Technology Ltd., was established in late 2013 and is 70.52% owned by Li Lin, the founder and CEO of Huobi Group. It has 10 million yuan ($1 million) in registered capital and a total of five subsidiaries. 

Having passed the resolution in favor of dissolution on July 22, stakeholders will now proceed to deregister Beijing Huobi Tianxia within 45 days. Creditors are requested to declare their claims to the liquidation team, headed by Li, within the same time frame.

As of the time of writing, the share price of Huboi Technology Ltd., also owned by Li and is a subsidiary of Huobi Group, has fallen by 21.88% during trading hours on July 27.

Publicly available records also reveal that OKEx — which, like Huobi, relocated overseas following Beijing’s 2017 crackdown on crypto — also resolved to dissolve a China-based entity called Beijing Lekuda Network Technology Co., Ltd. on June 24. OKEx founder Mingxing Xu, also known as Star Xu, will oversee the liquidation and clearing process for the company. 

Related: China’s crypto industry is gone? Beijing’s crackdown keeps sending shockwaves

The dissolution of both entities comes amid a renewed period of government pressure on the cryptocurrency industry, with targets including its social media and internet presence, as well as mining sites. Bobby Lee, who operated China’s first crypto exchange BTCChina, recently voiced his fears that within 4 or 5 years, Beijing may make a move to ban cryptocurrency outright.

In parallel, the development of a centralized, central-bank-issued digital yuan, the e-CNY, proceeds apace, as an explicit state rival to decentralized cryptocurrencies.

Cointelegraph has reached out to Huobi for comment and will update this article with further information in due course.