Huobi Group, the owner of cryptocurrency exchange Huobi, has established a local branch of the Communist Party of China (CPC) in Beijing, as reported on Tuesday by the South China Morning Post (SCMP). The committee is under the umbrella of a company subsidiary called Beijing Lianhuo Information Service.
As per the CPC’s chapter, every state and private entity should establish a political branch if the organization has more than two employees who are party members. The committee works as a center for the propaganda of CPC policies and decisions.
According to the SCMP, the creation of a CPC branch is a typical move for state-owned enterprises, but in recent years, the process has also become widespread among private companies in a bid to establish closer ties with the ruling elite. Earlier this year, China removed the two-term limit for its president, so incumbent Xi Jinping, who has been in power since 2013, can remain the CPC leader and the head of state for life. Several leading Chinese private companies with interest in the blockchain industry have already established Communist Party committees, including tech giant Alibaba Groupand gaming corporation Tencent Holdings.
Li Lin, the owner and CEO of Huobi Group, described the creation of the CPC branch as a “milestone” in the company’s history. The opening ceremony featured more than fifty employees who are party members.
“We must enhance the party’s political leadership, and carry out the party’s principles and policies in private enterprises,” Cao Zhou, a CPC official from Beijing’s Haidian district, said while commenting on the Huobi’s move.
Huobi was founded in 2013 in China, but in late 2017, it moved the main part of its business, the cryptocurrency exchange, abroad due to the local ban on virtual coin trading. Currently, the group maintains mining pools and venture funds in China while its exchange is based in Singapore. Huobi is one of the largest crypto markets, with $905.3 million in trading volume for the 24 hours to 10:16 UTC on Tuesday.