Two Chinese Crypto Asset Exchanges to Close Beijing Subsidiaries

Two Chinese crypto-asset exchanges, Huobi and OKCoin, have reportedly shut down their Beijing subsidiaries. The closing of subsidiaries of both exchanges can be seen as having an effect on the tightening of regulations on crypto assets in China.

Huobi and OKCoin are crypto asset trading service operators established in China. Although it is a highly trusted place, at the end of June 2021, OKCoin announced the closure of its Beijing subsidiary, and on July 22, Huobi also applied to the authorities to close its Beijing subsidiary. Huobi explained that the Beijing subsidiary was closed because it was not in business. According to the report, Huobi is taking measures to comply with Chinese regulations and protect investors, and it is pointed out that the closing of the subsidiary may have had an effect on the tightening of regulations on crypto assets in China.

In addition, Huobi has partially stopped providing mining services in China from May 2021. Huobi’s move may have been influenced by the announcement of the Financial Stability and Development Committee of China’s State Council on May 21 that it would crack down on bitcoin mining and trading activities and resolutely prevent the spread of social risks.

Meanwhile, Huobi and OKCoin held a meeting with the People’s Bank of China in 2017 and suspended Bitcoin and Litecoin wallets for one month to prevent money laundering and illegal transactions. Related information can be found here.