Huobi: First Crypto Exchange to Set Up Communist Party Committee in China

World’s third largest crypto exchange Huobi is looking forward to forming its own communist party committee. This move is going to be the first of its kind in China. The firm has achieved significant international expansion this year. With that, it has chosen to opt for “closer ties” with the government.

Reportedly, Beijing Lianhuo Information Service Co. Ltd, a subsidiary backed by Huobi has opened a party branch on Friday. It is expected that this move will consolidate the association between Private firms in China and the government. The opening conducted a significant amount of audience and speeches. Around 50 members of Huobi were present in the launch.

Here, Huobi founder and CEO Li Lin considered this move as a ‘milestone for our company.’ At the launch of the party committee he stated, “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.” Notably, Lin holds a major 99 percent stake in BLIS.

Also, Cao Zhou, a party official expressed, “We must enhance the party’s political leadership, and carry out the party’s principles and policies in private enterprises.”

In China, business entities having at least three party members as employees can open its own party office. Private business firms in China intently desires to have a strong relationship with the Government.

Before this, massive tech firms such as Baidu search engine, Alibaba Group Holding, Xiaomi Smartphone supplier, and Owner of the South China Morning Post(SCMP) had been with the party committees. Thus, Huobi will be the first crypto exchange firm to have ties with the government.

Moreover, China possesses a tough jurisdiction in which there is a ban on activities such as trading. This situation creates a worried atmosphere for investors. This has already triggered a slow exodus of many outfits to neighboring Hong Kong, reportedly.