A South Korean cryptocurrency exchange announced that it has opened its first legally recognized branch in China. Although the nation has banned all local crypto trading services, DBX said the company has already obtained a license to continue operations.
Final deed of incorporation issued on February 5th
According to Money Today, as part of its overseas expansion plans, DBX received operating permits to set up its subsidiary in China. The crypto exchange is affiliated with the Korea Blockchain Coordination Association.
According to the stock exchange, the Chinese government approved the opening of the branch on December 28, 2020 for the first time with temporary approval. However, officials issued the definitive instrument of incorporation on February 5, 2021.
One DBX official commented on the matter as follows:
The license to start a business, obtained this time by the Chinese government, is a license obtained by the opposition to the creation of foreign (crypto) exchanges in China to add even more prominence.
The branch with the name Tabi will open its doors “at the latest in March”, according to the officials of the crypto exchange. DBX plans to expand its operations to the US, Singapore, Indonesia and Cambodia.
Domestic crypto trading is still banned in China
The relationship between cryptocurrencies and China has been quite tumultuous. Since 2017, Chinese regulators have been banning crypto activities by initially banning local crypto exchanges. However, the government later went further and also cracked down on domestic trading and mining operations.
However, the country’s authorities have made some clarifications regarding their stance on Bitcoin (BTC) in recent years. The Beijing Arbitration Commission published an article on the legal nature of Bitcoin in China in August 2020.
They stated that the use of bitcoin as a commodity was never banned in the Asian giant.
In addition, China is paving the way for the introduction of its upcoming central bank digital currency (CBDC), the digital yuan. Recently, news.Bitcoin.com reported that the country was giving away 10 million yuan ($ 1.55 million) in its Beijing CBDC. Recipients can spend the digital yuan during the Chinese New Year Festival.
What do you think of this overseas crypto exchange opening in China? Let us know in the comments below.
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