Beijing Lianhuo Information Service, a subsidiary of virtual currency exchange platform, Huobi, recently created its Communist Party Committee. Huobi becomes the first Chinese cryptocurrency company to establish a branch of the nation’s Communist Party.
First Communist Party Committee by a Chinese Crypto Company
According to the South China Morning Post, a subsidiary of cryptocurrency exchange platform, Huobi, has become the first Chinese cryptocurrency company to create its chapter of the Communist Party. Beijing Lianhuo, a company worth $2.9 million and owned by Li Lin, the Houbi founder is the subsidiary responsible for the development.
As part of the charter of the Communist Party, any Chinese business that has at least three employees who are members of the party must create a branch. The purpose of the chapter is usually to promote the party’s rhetoric.
For Li, the news is a welcome development and a “milestone” for the company as a whole. Local media sources indicate that Li, as well as other party members who work at Huobi, were in attendance at the ceremony to establish the Party’s branch.
Presently, Huobi is the third-ranked cryptocurrency based on 24-hour trading volume which stands at a little over $756 million. While the company is the first in the cryptocurrency industry to establish a Communist Party Committee, the practice appears to be commonplace among other privately-owned tech companies.
With the centralized control held by Beijing, it is perhaps necessary for companies that work with cutting-edge technology to find ways to liaise with the government. Conglomerates like Alibaba, Tencent, and Baidu also have party branches.
Cryptocurrency and Politics
For Huobi, the move might create an opportunity for the company to play a more active role in Chinese politics. In September, China banned ICOs and cryptocurrency trading. This move forced companies like Huobi to move elsewhere.
Outside China, the subject of getting involved in politics from a cryptocurrency perspective is one that seems to be on the forefront in recent times. Earlier in the year, American cryptocurrency exchange behemoth, Coinbase, announced the creation of its Political Action Committee (PAC).
In the United States, the use of cryptocurrencies in making donations to political campaigns is also another issue that has generated some debate. States like California and North Carolina have banned Bitcoin campaign donations despite a Federal Election Commission ruling of 2014 which okayed such contributions.
Do you think the increased participation of cryptocurrency stakeholders in the political sphere cab bring about more favorable government policies for the industry? Let us know your thoughts in the comment section below.
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