The watchdog isn't banning the exchanges.
The lower burn value is a "natural response" to last month's market trends, a spokesperson said.
Huobi Technology's U.S. subsidiary hired the veteran with 20 years law enforcement experience to help it meet regulatory requirements.
Traders in China appear to be more concerned about the future of Huobi and OKEx.
The company said it's an old entity that isn't in use anymore.
"We didn't want to make this a thingy," Binance CEO Changpeng Zhao posted Monday on Twitter, a week after making the change.
HECO is Huobi's answer to Binance's Smart Chain, having launched three months after BSC went live in September 2020.
The exchange is scaling back trading services in response to China’s crackdown on crypto.
The new company is part of Huobi’s efforts to make a return to the U.S. market.
Binance may gain customers because of Huobi's new restrictions.
Huobi will advise Beyond Finance on creating a decentralized "synthetic-asset" platform.
The move comes as officials in mainland China have upped the pressure on crypto mining and trading.
The project is led by a former Huobi executive and includes the participation of investors including Multicoin Capital and Polychain Capital.
The exchange made the move on the heels of a series of crackdown notices from Bejing in recent weeks.