Huobi, the Singapore based major cryptocurrency exchange’s US based subsidiary has just confirmed, that the company has launched a Communist Party branch, to fulfill certain obligations that it had to the Chinese state.
With regards to their recent efforts to pursue an international expansion this year, Huobi has done some incredible work. Huobi has recently set up shop in Russia on the 12th November. The exchange was first founded in China, which explains why the exchange has been trying to foster “closer ties” with the government.
The new Communist Party branch is being set up at an additional subsidiary, Beijing Lianhuo Information Service (BLIS). Li Lin, who is the CEO and founder of Huobi, also happens to own a 99 percent stake in BLIS.
The branch was officially launched today and the opening ceremony took place in front of an audience. Chinese law dictates that any organization that has more than three Communist Party member employees have to set up its own branch. Major companies like Baidu and Alibaba have done it too.
However, this practice was mostly prevalent in State Enterprises. This move made Huobi among the first cryptocurrency industry businesses to take a step such as this.
Li, who also features on China’s list of top crypto billionaires, said at the opening ceremony:
“Under the cordial care of the Party Working Committee of Haidian Park, the party branch of the Beijing Lianhuo Information Service Co., Ltd. has been gloriously established.”
China has a strong anti-crypto stance which it has maintained for some time now. Which is why, it is particularly difficult to conduct cryptocurrency-focused business since trading is banned in the State and most crypto experts are slowly moving out of China to neighboring countries of Hong Kong.