Huobi Group, the world’s largest crypto exchange, now has created a panel of Communist Party which is the first ever creation for any crypto exchange or any blockchain exchange in China.
As per the reports of South China Morning Post, Huobi launched a Communist Party branch office on November 16. The exchange announced it on a microblogging website Weibo. Huobi was established in 213, and it is currently the third largest virtual currency exchange firm in the world. Huobi has per day volume of around $560 million.
The CEO of Huobi has around 99% stake in the Beijing Lianhuo Information Service Co. Ltd. The organization was established in April 2018 with a capital asset of 20 million yuan, i.e. 2.9 United States dollars.
Involvement of Firms
The Communist Party of China sanction states that any business entity in the country, which is hosting more than three party individuals as workers can establish its party branch office. Major Private Firms in the country are now setting up their advisory groups in order to strengthen their relations with the government.
Huobi is the first crypto exchange to tie up, whereas, other IT companies like Tencent, China’s Google – Baidu, Alibaba group, and Xiaomi have already established their Communist Party Branches. There are other startups joining the league which includes Douyu – live stream platform and Ofo – bike sharing platform.
The official of Communist Party Cao Zhou commented on development, he said that China needs to enhance the political leadership. “We must carry the policies and principles of the party with the private enterprises.” he further added.
Crypto in China
China still carries a negative stance regarding cryptocurrency. The country still considers crypto as taboo. The regulatory authorities in China have shut down major fiat-to-cryptocurrency exchange, as well as banned Initial Coin Offerings (ICOs) in September last year.
Many people thought that this move could have a major impact on the blockchain innovation in China. However, after one year, other crypto exchanges have migrated to other parts of the globe, whereas, China, on the other hand, is on the way to make blockchain application apart from cryptocurrencies.
Huobi operates from Singapore, and it kept most of its business operations within China. It will be a thing to observe that how the company’s new Communist Party branch will affect its business as well as the whole crypto industry.