Huobi’s has resolved to dissolve its China-based entity in Beijing. According to the company, “since this corporation has not had any business operations, it is unneeded and has asked for cancellation.”
According to publicly available papers, shareholders in the Chinese corporation that was created to operate cryptocurrency exchange, Huobi have decided to liquidate the entity.
Beijing Huobi Tianxia Network Technology Ltd. was founded in late 2013 and is owned by Li Lin, the founder and CEO of Huobi Group, to the tune of 70.52%. It has a registered capital of 10 million yuan ($1 million) and five subsidiaries.
Stakeholders will deregister Beijing Huobi Tianxia within 45 days after passing a resolution in favour of dissolution on July 22. Creditors must also notify the liquidation team, led by Li, of their claims within the same time frame.
Huobi told Cointelegraph that “this is an entity that Huobi registered in Beijing years ago, in the early phases of growth,” and that “since this corporation has not had any business operations, it is unneeded and has asked for cancellation.”
During trading hours on July 27, the share price of Huboi Technology Ltd., which is also owned by Li and is a subsidiary of Huobi Group, had decreased by 21.88%.
OKEx — which, like Huobi, migrated overseas following Beijing’s 2017 crypto crackdown — also agreed to liquidate a China-based corporation called Beijing Lekuda Network Technology Co., Ltd. on June 24, according to publicly available records.
Mingxing Xu, popularly known as Star Xu, the company’s founder, will be in charge of the liquidation and clearance procedure.
The demise of both businesses comes amid heightened government pressure on the cryptocurrency industry, with social media and internet presence, as well as mining sites, as targets.
Bobby Lee, the founder of China’s first cryptocurrency exchange BTCChina, recently expressed his concern that Beijing may ban bitcoin outright in the next 4 or 5 years.
Parallel to this, the e-CNY, a controlled, central-bank-issued digital yuan, is gaining traction as a clear state rival to decentralized cryptocurrencies.
