Cryptocurrency
The Crypto Mogul Who’s Got the Ear of China’s Central Bank
As reported on Bloomberg, “The former Oracle Corp. coder, who started one of the world’s largest Bitcoin exchanges six years ago, enjoys unusual access to China’s central bank and government officials thanks to methodical engagement and measured expansion. While rivals Binance and OKEx irked regulators by stoking Bitcoin mania, Li curried favor by discouraging speculation, co-founding the country’s […]
As reported on Bloomberg, “The former Oracle Corp. coder, who started one of the world’s largest Bitcoin exchanges six years ago, enjoys unusual access to China’s central bank and government officials thanks to methodical engagement and measured expansion. While rivals Binance and OKEx irked regulators by stoking Bitcoin mania, Li curried favor by discouraging speculation, co-founding the country’s first state-backed blockchain platform along the way. Huobi even set up a Communist Party committee in-house — a first for any crypto firm.
“That’s why, keen to explore homegrown alternatives to Facebook Inc.’s Libra and a Western-led blockchain, Chinese central bank and government officials are turning to Li — among others — to help develop a local blueprint for crypto supremacy. The still-nascent blockchain arena offers the world’s second-largest economy a rare chance to become an early influencer. Washington’s concerted campaign to contain China has only strengthened Beijing’s resolve to wean itself off American technology.
“‘Once in a lifetime,’ said Li, a bookish-looking 36-year-old with thick black glasses. ‘It’s my hope that we’ll not just be a participant but a driver, even the leader of blockchain history.’
“Li co-founded Huobi in the fall of 2013 and later received backing from well-connected ZhenFund and Sequoia China. But the tale of how he and Huobi came to occupy its privileged position really begins in 2017, at the height of Beijing’s paranoia about the potential for unchecked Bitcoin speculation to foment social upheaval.
“Word trickled down to Li in the summer of that year that officials were preparing a major crackdown on the industry. His instinct was to rush back from medical leave and instruct his team to get Huobi’s almost 2 million registered users to withdraw their funds. But he also began delivering daily progress reports to local regulators and briefed officials whenever requested.
“Watching his counterparts collapse like dominoes, he realized that regulators meant life-or-death in his world. Li’s since made it his mission to get on Beijing’s good side, from hosting seminars and classes for officials to organizing conferences under the auspices of local government…”