Huobi Stock Plunges as the Exchange Shuts its Beijing Office

There are several exchanges out there in the crypto space. Not all of them are successful, but Huobi is one of the most successful ones. It has been operating worldwide and especially in China, for the past few years. The exchange is listed as one of the top competitors in the crypto world and is known for its efficient transactions, low rates, and excellent 24/7 customer support.

Sadly Huobi exchange is dissolving one of its entities in China and has faced about a 22% decline in its stock price. The Beijing Huobi Network Technology Co limited was set up back in 2013 and has recently contacted China’s regulatory authority to dissolve all the paperwork, which stands as a green license for the company to operate freely in the region. The Huobi chairman Li Lin Is in charge of this operation taking place in China and has requested all the creditors to come forward and report their rights (shares they have invested into the entity) led by his team. According to an insider’s source, Li Lin himself holds about 70.5% shares in the Beijing entity.

China’s Regulatory Pressure on Crypto Exchanges

Well, this is the crypto market we are talking about, where rumors fly as speedily as rockets propel into space. Some say the Huobi exchange is under evaluation by the Department of Justice or some other regulatory authority, and to strengthen their case, they are now dissolving the Beijing entity as if it was shady. This is not true at all and is merely a rumor; according to Huobi’s spokesperson, the Beijing entity was developed at the pioneer stages of Huobi exchange operation stretching globally, it hasn’t been in any kind of use at all.

There is no trading going on, nor are any customers that this branch facilitates, which is why Huobi exchange has taken the step to dissolve the Beijing entity completely. Not so surprising at the end, right? But still, this has caused Huobi’s stocks to deteriorate in the open market; what can be said for the performance of Bitcoin or other cryptocurrencies?

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