Crypto Exchange Huobi Creates Communist Party Committee

News | November 20, 2018 By:

Huobi Group, company behind major crypto exchange Huobi, has established a Communist Party committee in China to strengthen ties with the government.

In China, local and overseas firms with three or more party members as employees are required by law to establish a party organization responsible for promoting the official party line. The CCP Constitution states that party organizations are more focused on making sure the company follows the law and overseeing organizations, such as trade unions and the Communist Youth League. No management or governance role is specified.

Huobi’s party branch has been created by its subsidiary Beijing Lianhuo Information Service, which was established earlier this year with Huobi founder and chief executive Li Lin owning 99 percent of the company. Huobi is the first cryptocurrency company to set up its own party branch, following the footsteps of Baidu, Tencent, Xiaomi and Alibaba Group.

Li hailed the move as a “milestone” for the company, saying that the key reason for Huobi’s success is because of the party’s policies promoting the blockchain industry.

“Today is a milestone for our company,” said Li. “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. The core reason is mainly due to the party and the state’s policy of encouraging innovation and entrepreneurship and encouraging the development of blockchain industries.”

Cao Zhou, a party official with Beijing’s Haidian district where Huobi is based, said that Huobi attaches great importance to the establishment of the party branch, adding that Lin is very supportive and worthy of recognition.

“We must enhance the party’s political leadership, and carry out the party’s principles and policies in private enterprises,” Zhou said. “I hope that the party branch will improve the organization and promote the party organization of the enterprise to become a demonstration point.”

Founded in China in 2013, Huobi is the world’s third largest crypto exchange with a daily trading volume of $560 million. It now operates its main exchange service from Singapore but has kept most of its businesses within mainland China, including venture funding and crypto mining pools.