Huobi creates a new committee to work with the Chinese Communist Party

The Huobi Group has established a Communist Party cell in one of its subsidiaries in Beijing. The group that owns the Huobi exchange announced on its website on November 16 that it is “necessary to implement” the principles and policies of the Communist Party into private companies. The move, which is a first of its kind for the Chinese cryptocurrency space, is also aimed at gaining party support for the platform's business in the country.

Huobi founder and CEO Li Lin called the innovation a “major development” for his firm at a committee opening ceremony attended by 50 employees.

After Chinese regulators banned the cryptocurrency last fall, local exchanges were forced to move to friendlier jurisdictions. The Huobi exchange now operates in Singapore, however, it is still engaged in consulting and research on the Chinese market.

The Communist Party requires firms that employ three or more party members to create such committees. And, although this applies to government organizations, in recent years private enterprises have also begun to be guided by this principle.

Chinese authorities have banned cryptocurrency activities, including token sales, but they are actively promoting the implementation of blockchain technology. Indeed, the Communist Party welcomes the dissemination of information about blockchain in government bodies and published an article in August explaining the technology to officials and party members.