In its bids to maintain a proper standing with the Chinese Government, Huobi Group (owner of the Huobi crypto exchange) has launched a Communist Party committee in China. This is the first time such will be done in China by a blockchain based company.
Beijing Lianhuo Information Service
The report made it known that Huobi used one of its many subsidiaries— Beijing Lianhuo Information Service, to create the committee.
This was confirmed in a recent statement from the owner of Huobi, Li Lin, which reads:
“Under the cordial care of the Party Working Committee of Haidian, the party branch of the Beijing Lianhuo Information Service Ltd. was gloriously established,”
The information service centre was created earlier this year and the creation of the Communist Party committee has so far been the major highlight of the company’s activities this year. The owner of Huobi, Li Lin greatly praised the action of the information service centre. He also referred to the committee created as a major milestone for Huobi. He also praised the Communists party for its friendly policies towards the blockchain industry.
According to the report, due to the current blanket ban on cryptocurrency in China, most of Huobi’s Partners are now operating outside China.
In spite of the blanket ban, the Chinese government has been friendly towards blockchain. Since the ban now affects any form of crypto-related operations within the country, several businesses, most especially cryptocurrency exchanges have shifted their base of operations to more accommodating countries like Hong Kong and Singapore.
Huobi is Operating Outside China
A recent report made it known that Huobi Group’s digital asset platform is one of such platforms which left China for Singapore once the blanket ban became effective.
Companies that plan to keep operating within China were ordered to remove access to crypto on their platforms.
A good example of this can be seen in the case of WeChat and Alipay which were forced to close the accounts of cryptocurrency based merchants, due to a state order.