A South Korean cryptocurrency exchange announced that it has established its first legally recognized branch in China. Although the country has banned all local encryption trading services, DBX said the company has obtained a license to conduct the business.
Awarded the final company registration certificate on February 5
According to a report in “Money Today”, as part of its overseas expansion plan, DBX has obtained an operating license to establish a subsidiary in China. The cryptocurrency exchange is affiliated to the Korea Blockchain Coordination Association.
According to detailed information provided by the exchange, the Chinese government first approved the opening of the branch on December 28, 2020 by issuing a temporary permit. However, officials awarded the final company certification on February 5, 2021.
DBX officials commented on the matter:
The license to establish a company obtained from the Chinese government this time is a license obtained from the opposition to establish a foreign (crypto) exchange in China, so that it can give greater meaning.
Crypto exchange officials stated that the branch named Tabi will open its doors “no later than March.” DBX plans to expand its business to the United States, Singapore, Indonesia and Cambodia.
China still bans domestic crypto transactions
The relationship between China and cryptocurrency has been turbulent.Since 2017, Chinese regulators Ban First issue a ban on local cryptocurrency exchanges to deal with cryptocurrency-related activities. However, the government later went beyond this range and severely cracked down on domestic trade and mining operations.
However, the US authorities have been clarifying their position on Bitcoin (BTC) for the past few years. The Beijing Municipal Arbitration Commission published an article on the legal nature of Bitcoin in China in August 2020.
They stated that Asian giants have never banned the use of Bitcoin as a commodity.
In addition, China is paving the way for the adoption of the upcoming central bank digital currency (CBDC) digital renminbi. Recently, news.bitcoin.com reported that China has donated 10 million yuan ($1.55 million) to the CBDC in Beijing. The recipient can consume digital RMB during the Spring Festival.
What are your thoughts on opening an overseas branch of a cryptocurrency exchange in China? Let us know in the comments section below.
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