Crypto exchange Huobi is dissolving its entity in China amid the ongoing crackdown.

Crypto exchange Huobi has announced to dissolve its entity in China amid the ongoing crackdown on crypto mining. According to Chinese business registration records, Beijing Huobi Tianxia Network Technology Limited stakeholders have passed a resolution to dissolve the entity, posting a notice on July 22. Li Lin, founder, and CEO of Huobi Group, who also controls Beijing Huobi, is the person in charge of the clearing and liquidation process.

The share price of Huobi Tech falls. 

The notice didn’t draw wider public attention until Tuesday, when Chinese crypto media started to report on the dissolution. The share price of Huobi Tech, another Hong Kong-listed subsidiary of Huobi Group owned by Li, fell by 21.88% during the trading hours on Tuesday. Huobi’s move comes only a month after Beijing Lekuda, founded by OK Group’s Star Xu in 2012 to operate Huobi’s then-rival exchange OKCoin, also filed for dissolution. Crypto firms in China are moving out of the country at an alarming speed as the government continues to crack down on the sector. 

Huobi’s crypto trading services won’t be affected.

Huobi and OKEx’s crypto trading services won’t be affected since the two crypto companies moved their exchange businesses out of China years ago. But the dissolving decisions come at a time when China is stepping up efforts to crack down on both crypto trading and mining activities inside the country. Based on court judgments of multiple legal disputes involving Beijing Lekuda and Beijing Huobi Tianxia, the two entities had operated the Huobi and OKCoin exchanges in China since their inception. However, this ended when the People’s Bank of China issued the ban in September 2017 on ICOs and centralized fiat-to-crypto trading.