The popular Singapore-based cryptocurrency exchange, Huobi has created a Communist Party Committee, making it the first blockchain based company to do so in China.
The committee was created through a Huobi subsidiary called Beijing Lianhuo information service, which was recently registered as a business earlier this year. The subsidiary is owned by the founder of Huobi Li Lin who praised the launch of the committees, referring to it as a milestone for the firm, hailing the communists party for its friendly policies towards the blockchain industry, where Huobi has several businesses operating out of mainland China.
The founder of Huobi stated:
“Under the cordial care of the Party Working Committee of Haidian, the party branch of the Beijing Lianhuo Information Service Ltd. was gloriously established.”
One of the officials from the same place where Huobi’s blockchain organisation is based, Cao Zhou made a warning on the new branches roles.
“We must enhance the party’s political leadership, and carry out the party’s principles and policies in private enterprises.”
The laws of the communist party make it a necessity for an organisation with at least three communist party members as employees to set up a branch of the party - this especially applies for state-owned firms. While this directive doesn’t extend to private companies, a couple of privately owned firms have started to launch communist party committees in recent times as they look for ways to make stronger ties with the government.
As reported by CCN:
“The Chinese government has been friendly to blockchain while holding an anti-crypto stance. The Communist party had put a blanket ban on crypto earlier last year, leading to an exodus of cryptocurrency exchanges to neighbouring Asian countries.”
Huobi Group’s digital asset platform was one of the organisations which fled away from China before making a home in Singapore where it now operates. The Communist Party has also sent out a warning to relaxation sports in China and private venues not to take on any events that were related to cryptocurrency.
Earlier in the year, Alipay and WeChat were given a state order which forced them to close their accounts of cryptocurrency based merchants.
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