In the summer of 2025, Huaxing Capital announced a partnership with YZi Labs (formerly Binance Labs), planning to allocate $100 million to BNB. This followed a previously approved $100 million budget to enter the Web3 and cryptocurrency space, signaling a strategic shift from traditional internet services to digital assets.Background & Challenges Huaxing Capital once dominated China’s internet M&A as a "super facilitator," but antitrust policies and market changes have eroded its traditional ...

In the summer of 2025, Huaxing Capital announced a partnership with YZi Labs (formerly Binance Labs), planning to allocate $100 million to BNB. This followed a previously approved $100 million budget to enter the Web3 and cryptocurrency space, signaling a strategic shift from traditional internet services to digital assets.Background & Challenges Huaxing Capital once dominated China’s internet M&A as a "super facilitator," but antitrust policies and market changes have eroded its traditional ...

The Bottom Line Up Front Operating a “Web3 studio” that rents out thousands of accounts to create fake volume for token projects is not a regulatory gray area in China—it is a criminal minefield. The act of “providing liquidity services” is, under current Chinese law, indistinguishable from aiding fraud, illegal fundraising, unlicensed financial activity, money-laundering and criminal-network assistance.Regulatory Backdrop: Two Notices, Zero Wiggle Room2017 “Notice 94” – ICOs banned; virtual-...

The Bottom Line Up Front Operating a “Web3 studio” that rents out thousands of accounts to create fake volume for token projects is not a regulatory gray area in China—it is a criminal minefield. The act of “providing liquidity services” is, under current Chinese law, indistinguishable from aiding fraud, illegal fundraising, unlicensed financial activity, money-laundering and criminal-network assistance.Regulatory Backdrop: Two Notices, Zero Wiggle Room2017 “Notice 94” – ICOs banned; virtual-...