After China comprehensively upgraded its regulatory policies on virtual currencies, the cryptocurrency concept stocks listed in Hong Kong plummeted.On September 27, the share price of Huobi Technology Holdings Co., Ltd. plummeted to 6.7 Hong Kong dollars per share, a drop of more than 30%, the lowest since January 4. As of the close, Huobi Technology reported 7.85 Hong Kong dollars per share, a decline of 21.5%.
Central Bank: Virtual currency-related business activities are illegal financial activities
Intern/Hou Jiacheng
Reporter/Rongxun
Another cryptocurrency concept stock Oukeyun Chain Holdings Co., Ltd. also plunged, with the lowest falling to 0.243 Hong Kong dollars per share, a decline of more than 22%, a record low since January 22. As of the close, Ouke Yunlian reported HK$0.255 per share, a decrease of 19.05%.
On September 24, the People’s Bank of China and other 10 departments issued the “Notice on Further Preventing and Disposing of the Risks of Virtual Currency Trading Hype”, clarifying that virtual currency-related business activities are illegal financial activities, and at the same time, overseas virtual currency exchanges are issued to my country via the Internet. Services provided by domestic residents are classified as illegal financial activities. On the same day, 11 departments including the National Development and Reform Commission issued a document prohibiting new virtual currency “mining” projects and speeding up the orderly exit of existing projects. At the same time, virtual currency “mining” activities will also be officially classified as an obsolete industry.
Affected by this, the share prices of Canaan Technology and Ebon Communications, which are listed in the United States, fell 21.16% and 7.26% respectively on September 24.
Some cryptocurrency exchanges also quickly made business adjustments in accordance with the above-mentioned regulatory policies. Huobi Global suspended the registration of new users in Mainland China on the same day. On September 26, Huobi Global announced that it plans to complete the orderly withdrawal of existing users before December 31, 2021.
Huobi Global was originally the controlling shareholder of Huobi Technology. Huobi Technology is mainly engaged in various services (such as asset management and trust and custody business) in the virtual asset ecosystem. The actual controller is Li Lin, the founder of the cryptocurrency exchange Huobi.com, who holds approximately 58.07% of the shares.
The official website shows that Ouke Cloud Chain is mainly engaged in the transformation of new blockchain technologies and USD compliant stablecoins. The actual controller is Xu Mingxing, the founder of the cryptocurrency exchange OKEx.
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