- DBX, a South Korean cryptocurrency exchange has established its first legally recognized branch in China
- The exchange announced that it has obtained a license to go ahead with the operations
- The local branch will be opened for operations in March
DBX, a South Korean cryptocurrency exchange, announced the establishment of its first foreign branch in China. The exchange has become the legally recognized crypto branch in China, a country that has banned the operations of local crypto exchanges.
DBX Gets Operational Licence in China
In the process of opening the first foreign branch in China, DBX received an operating license to establish the subsidiary in China as part of its overseas expansion plans. The crypto exchange is affiliated with the Korea Blockchain Coordination Association.
As per the report, the officials granted DBX the final incorporation’s certification on February 5, 2021. However, the exchange explained that it had received a temporary permission for the opening of the branch on December 28, 2020, after months of applying.
An official of the DBX exchange explained that the green-light from the Chinese government to establish a corporation in the country held great meaning because of China’s stance towards cryptocurrencies and foreign crypto exchanges.
DBX announced that the branch which has been named Tabi will open its doors “no later than” March 2021. The exchange has also highlighted plans to extend its services and operations to other parts of the world, including the United States, Singapore, Indonesia, and Cambodia.
With the state of things in China, it is still unclear the type of services the exchange will offer: if the exchange will begin work on blockchain development in line with China’s BSN or continue with its crypto exchange services.
On the Flipside
- Alphabet has canceled its experimental internet-beaming balloon business Loon
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China’s Stance of Cryptos
Although China represents one of the biggest crypto markets, it hasn’t had the smoothest operations with cryptos. In September 2017, China banned initial coin offerings (ICO) as well as trading with cryptos.
Exchange platforms that facilitated ICOs and traded them were also ordered to be closed following the crackdown on ICO. Interestingly, it is not illegal to hold Bitcoins and other cryptocurrencies or even to buy or sell them in China.
While China has been hostile towards the use of cryptos, it has wholly embraced blockchain technology. In October 2019, President Xi Jinping stated the need for the advancement of the technology in China.
The country launched the Blockchain-based Service Network (BSN), a nationwide Blockchain network seeking to integrate smaller blockchains into a much larger network controlled by the government.
While the future of traditional cryptos remains uncertain in China, the country is paving the road to adopting a central bank digital currency (CBDC), the digital yuan. China has been giving away 10 million digital yuan ($1.55 million) to citizens who can spend them during the Chinese New Year festival.