Hard Effort to Achieve the Legal Norm for Chinese Crypto Exchanges
Due to worries about state supervision, the survival desire of Chinese crypto exchanges forced them to take various actions. On the one hand, some exchanges have taken measures to focus on preventing relevant risks, including stopping non-compliance business like altcoins, relocating offices or even canceling the offline activities keep a low profile as much as possible.
On the other hand, while taking the above defensive measures, some exchanges focus on the goal of compliance and try to form a good relationship with the regulators and local governments, trying to take the lead in the potential trend of compliance. Especially for some major exchanges, compliance has become the most urgent task for them in recent period.
Huobi and OKEx are undoubtedly the most active ones in pursuing compliance. They have benefited from years of deep cultivation in China and frequently met with official institutions in recent months. Another exchange giant, Binance doesn’t make too many actions and sounds because of its immature layout in China.
Some exchanges join the blockchain industry Association led by the official institutions. By joining the association and alliance endorsed by governments, it can successfully integrate themselves into the official-led blockchain ecosystem. For example, The Chinese branch of cryptocurrency exchange Huobi has recently joined the Blockchain Services Network (BSN), an industry alliance initiated by the State Information Center (SIC) – a Chinese government policy-making think tank.
Seeking all kinds of official media interviews is another choice for Chinese crypto exchanges. To some extent, the official media represents the attitude of the official institutions and has an important impact on the mainstream social groups which can enhance the influence of the exchange itself as well.
Some Chinese crypto exchanges also actively participate in all kinds of official activities and try to relate to government officials. Huobi and OKEx took part in the opening ceremony of Hainan International Offshore And Entrepreneurship Demonstration Zone, under the frenzied propaganda of those exchanges, it even created an atmosphere where the government gives full support.
Acquisition of listed companies and integration into the traditional capital market is another choice for Chinese crypto exchanges. In the past year, Huobi and OKEx have successively acquired Hong Kong-listed companies and recently renamed themselves. Therefore, it seems that Huobi and OKEx, as listed companies, will be effectively supervised by the capital market and regulators, and attract more investors’ attention. But in fact, the core businesses of Huobi and OKEx have not been included in the main body of listed companies.