Huobi is the third biggest crypto exchange in the world. One of their subsidiaries has now created a branch of the Communist Party. The subsidiary is named Beijing Lianhuo Information Service and this seemingly is the first time a crypto exchange has created a Communist Party committee.
The founder of the exchanges says that this is a key milestone for the company, which has been in existence for the past 5 years.
The exchange has gone through a turbulent time with China’s crypto sector, but they have seemingly come out the other side after the moved their trading operations over to Singapore.
Huobi has been around since 2013 and they see daily trading volumes as high as $560m. Beijing Lianhuo Information Service was set up during April and they are starting with almost $3 million of capital. The chief executive and founder of Huobi, Li Lin holds a 99% stake in this subsidiary.
Any company in China which has three or more party members as part of their staff is advised to create their own branch for the part. This will be tasked with promoting the parties policies internally.
This has been a key part of public companies for some time now, with private firms only recently starting to create their own committee. A lot of them want the benefits that come along with having a close relationship with the government.
Those notable companies in the tech sector that have their own committees include the likes of Xiaomi and Alibaba.
Huobi is believed to be the first blockchain related company to have set up their own branch. There was a ceremony held by Huobi to mark the creation of this committee which was attended by Li and over 50 Huobi party members.