Amid rising regulatory pressure in China, major cryptocurrency exchanges Huobi and OKEx have decided to discontinue their entities based in the PRC. However, this won’t affect the main crypto trading activities of both exchanges.
Huobi, OKEx Dissolves Local Companies in China
In accordance with publicly available information, the stakeholders of Beijing Huobi Tianxia Network Technology Ltd agreed to dissolve the entity on July 22. Founded in 2013, Beijing Huobi is the company that operates the Huobi exchange in China. It is reportedly 70.52 percent-owned by the CEO of Huobi Group, Li Lin.
Beijing Huobi will be dissolved in about 45 days from the aforementioned date, and all the clearing and liquidation processes will be reportedly handled by Huobi Group’s CEO.
The reason for dissolving Beijing Huobi is assumed to be the regulatory uncertainty and recent crackdown on crypto mining and trading activities in China. However, Huobi said the entity hasn’t conducted any business operations.
Because this entity has not had any business operations, it is unnecessary and has applied for cancellation.
Huobi exchange
This comes a month after OKEx exchange also dissolved a Chinese subsidiary. Beijing Lekuda Network Technology Co was founded to operate OKEx services in China. However, a decision was made on June 24 to dissolve the company.
Could We See Exchanges Become Decentralised?
Major crypto exchanges have been making several adjustments to their services of late, which suggests that a whole new wave of regulatory security may be under way. Earlier this week, the largest crypto exchange, Binance, announced the reduction of the maximum leverage for Futures trading to 20x, likewise FTX exchange.
It is likely some crypto platforms may decentralise operations as the industry becomes immersed in stringent regulatory pressure. This month, non-custodial crypto exchange ShapeShift revealed plans to completely decentralise its operations.
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