Huobi Co-Founders Set Up New Chinese Entity

The co-founders of crypto exchange, Huobi Global, created an entity in Beijing on Nov. 15, according to the Beijing government’s company registry.

• The new entity is listed under the name Beijing Chiyu Mushou.
• Enterprise information database Tianyancha shows that the company has RMB 1 million (US$156,000) in registered capital. Leon Li, the founder and CEO of Huobi, has a controlling interest in the new entity, holding 58% of the shares. Huobi co-founder Du Jun holds 15% of shares.
• A Huobi representative said the formation of the new entity is a “personal matter of the shareholders.” It does not relate to Huobi or affect its decision to expel the mainland China user accounts, the spokesperson said via WeChat.
• Huobi dissolved one of its entities in Beijing in July this year. The company also announced it would be expelling China users by the end of 2021 after China effectively banned crypto trading.
• In September, China’s central bank and 10 other ministries issued a notice saying that it was illegal for overseas exchanges to provide online services to residents in China. Employees of overseas exchanges within mainland Chinese borders can be prosecuted for providing such services.
• Huobi said that it will cease offering services to Chinese users by year end. It also announced it would stop offering services to users in Singapore from March 31 2022.
• Huobi Global is a crypto exchange under the Seychelles-based Huobi Group.

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