Huobi and OKCoin are deregistered in China; Binance launches tax reporting API and removes some fiat currency trading pairs

Since May, domestic regulatory agencies have stepped up their efforts to regulate virtual currencies. The Financial Stability and Development Committee of the State Council (hereinafter referred to as the Financial Committee) held its 51st meeting and proposed to crack down on Bitcoin mining and trading activities and resolutely prevent individual risks from being transmitted to the social field.

The central bank also met with commercial banks and payment institutions again, emphasizing the need to prohibit the provision of services for virtual currencies. Major payment institutions and banks have also issued announcements prohibiting users from using their services for virtual currency transactions, while also increasing their scrutiny efforts.
As domestic regulation continues to increase, overseas regulation of virtual currencies is also constantly strengthening, especially global regulatory agencies are besieging Binance. It is against this backdrop that the three major exchanges have been forced to take some measures to cope with regulation. Li Lin and Xu Mingxing cancelled their domestic companies, and Huobi reduced its leverage to 5 times. Binance removed some fiat currency trading pairs and launched a tax reporting API tool. Founder CZ even claimed that he would embrace regulation.

According to the National Enterprise Credit Information Publicity System, on July 22, Beijing Huobi Tianxia Network Technology Co., Ltd. was dissolved due to a resolution and plans to apply to the company registration authority for cancellation of registration. Creditors shall declare their claims to the liquidation group within 45 days from the date of the announcement. The contact person for claim declaration and the person in charge of the liquidation group are both Li Lin.
The reason for the cancellation is that on the one hand, the domestic regulation on cryptocurrencies is constantly increasing. On the other hand, Huobi’s operating entity was transferred overseas after September 4, 2017. The entity that was cancelled this time was the early operating entity of Huobi, which is not the same entity as the current Huobi Global. In name, it is just a shell of Huobi and does not conduct virtual currency business. It has no value to exist.
At the end of June, Xu Mingxing also cancelled the domestic company OKcoin, on the grounds that the operating entity of OKcoin is also overseas, and there is no association between OKcoin and OKEX (Ouyi), but it is just a normal change of the main body of the group's subsidiaries. It is reported that Beijing Lekuda Network Technology Co., Ltd. (OKCoin) was dissolved on June 24 due to a resolution, and intends to apply to the company registration authority (Haidian District, Beijing) for cancellation of registration. Creditors are requested to declare their claims to the liquidation group within 45 days from the announcement. The claimant is the legal representative Xu Mingxing.
Li Lin and Xu Mingxing may have cancelled their domestic companies due to pressure from domestic regulators. Of course, the existence of domestic companies is more of a symbol, serving a publicity purpose, and does not carry out virtual currency business. Therefore, they do not have much value, and are prone to certain legal disputes, and will also become the target of domestic users' rights protection. According to Wu Blockchain, some Huobi employees have moved overseas.
Binance said in the announcement that from August 10, Binance will suspend margin trading pairs for Bitcoin, Ethereum and other large cryptocurrencies and their Australian dollars, euros and pounds. The platform will cancel all pending orders on August 12, automatically settle all open positions, and delist these trading pairs from the market. Binance CEO Zhao Changpeng also said in a tweet on Sunday that Binance will limit the maximum leverage for new users to trade cryptocurrency futures from 100 times the user's invested funds to 20 times. Of course, the withdrawal amount is also limited.

Binance announced today that it will launch the tax filing tool API at 12:00 (Hong Kong time) on July 28, 2021. This new API tool will help Binance users easily track their digital currency activities to ensure that they comply with the tax filing requirements set by local regulators.
With the Tax Preparation Tool API, users can:
Generate accurate and complete read-only digital currency reports and send them to third-party tax reporting tools, including transaction history, asset gains and losses on the Binance platform.
Get an instant overview of your tax obligations. The Binance Tax API will allow you to export your trading history and profit and loss records for more than one fiscal year, and integrate with third-party tax filing tools to make it easier for you to file your taxes with local regulators.
All signs from the three major exchanges indicate that global regulation is constantly being strengthened, and regulation of the cryptocurrency industry will become the main theme in the future. An industry without regulation will only become a paradise for scammers. Regulation will make the industry healthier, and embracing regulation is the wisest choice.