Huobi plans to buy crypto exchanges Bithumb and Bitflyer
Media: Huobi plans to buy Bitflyer and Bithumb
Chinese giant is considering buying two Asian crypto exchanges
Thus, Huobi wants to insure against pressure from the Chinese authorities, says Colin Wu
Investigation into Huobi prevents exchange from closing deals
Large Chinese cryptocurrency exchange Huobi is exploring the possibility of acquiring Japanese rival Bitflyer, as well as Korean platform Bithumb
One of the largest Chinese crypto exchanges, Huobi, is trying to buy two cryptocurrency trading platforms at once: Bitflyer and Bithumb. Chinese blockchain correspondent Colin Wu announced this on his Twitter page. Bitflyer is tentatively valued at $ 500 million, Wu says.
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Meanwhile, Wu notes that in the event of a takeover of Bitflyer, both exchanges could be blocked as Huobi is “under investigation by the Chinese government.” Earlier, Wu said that a top manager of Huobi was at the center of investigative actions, but later the official Twitter channel of the cryptocurrency exchange called these “false”.
However, Bithumb is not doing better in the local market. In early September 2020, the exchange found itself in the middle of a scandal involving over $ 20 million in fraud due to the listing of a cryptocurrency asset..
In November 2019, Huobi announced its withdrawal from the US market. Since then, the company has left two key areas for expansion – Japan and South Korea. Wu believes that Huobi is seen as a serious threat from the Chinese authorities, and therefore is rushing to take over foreign companies:
“Huobi is aware of the risks associated with dependence on the Chinese market, so it is very urgent to expand into overseas markets. However, Japan and South Korea are not the best investment targets. Their users are very closed, and the government strictly regulates [the industry] “.
According to Wu, both deals to buy exchanges had to be frozen due to a “surprise investigation” of Huobi. Huobi Founder Banned From Leaving China Since 2017, Wu Stresses.
China is actively preparing to launch the digital yuan and has been pursuing the largest local players over the past few months. For example, in October, Chinese authorities arrested Star Xu, founder of OKEx. What business Xu is on is still unknown..
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Despite the pressure on the local cryptoindustry, China continues to invest in the development of the decentralized finance market (DeFiDecentralized finance (DeFi) – this is financial services, built on blockchain technology, which offer users access to open, efficient and … More). According to James Gillingham, co-founder of the Finxflo liquidity aggregator, the Chinese authorities are “partnering” with Huobi, resulting in the exchange creating its own DeFi network..
“Thanks to Shanghai College, they have received full support. They are actually supporting this [DeFi development] through Huobi, “Gillingham added..
The BeInCrypto editorial staff previously reported that the Chinese authorities have also taken up the blocking of bank accounts of cryptocurrency miners as part of the ban on the circulation of digital assets throughout the country..
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