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Digital currencies
TechPolicy

Cryptocurrency exchange operators Huobi, OKCoin to close Beijing subsidiaries amid China’s crackdown

  • The latest moves by Huobi and OKCoin follow the central government’s actions against businesses related to bitcoin and other cryptocurrencies
  • BTCChina, which once ran the country’s largest cryptocurrency exchange, completely exited from bitcoin-related activities in June

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Huobi Group runs the world’s second-largest cryptocurrency exchange by volume. Photo: Shutterstock
Coco Feng
The operators of cryptocurrency exchanges Huobi and OKCoin are closing their respective subsidiaries in Beijing, dealing another blow to investors in bitcoin and other digital tokens in mainland China amid the latest crackdown on this sector.

Beijing Huobi Tianxia Network Technology Co applied last Thursday to cancel the company’s registration after its “resolution of dissolution”. Creditors must declare their claims to the liquidation group within 45 days of that announcement, according to company records on the National Enterprise Credit Information Publicity System’s website.

The company is a mainland Chinese entity of Huobi Group, which runs the world’s second-largest cryptocurrency exchange by volume. Shares of Hong Kong-listed Huobi Technology Holdings, a group affiliate, were down nearly 22 per cent on Tuesday.
That followed the announcement by Beijing Lekuda Network Technology Co in late June to close and liquidate digital asset trading platform OKCoin’s company in Beijing. Both OKCoin and cryptocurrency exchange operator OKEx were founded by controversial entrepreneur Star Xu Mingming, who was under investigation by Chinese authorities last year.
OKCoin founder Star Xu Mingming filed in June to cancel the company’s business registration in Beijing. Photo: Shutterstock
OKCoin founder Star Xu Mingming filed in June to cancel the company’s business registration in Beijing. Photo: Shutterstock

Beijing Huobi was “registered years ago” and remained a non-operating entity, according to a Huobi representative. “Because this entity has not had any business operations, it was deemed unnecessary, which led to its cancellation,” the person said.

Four of Beijing Huobi’s five mainland subsidiaries have already been deactivated. One blockchain company, in which Beijing Huobi holds less than a 1 per cent stake, remains active.
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