China Launches New Blockchain Infrastructure Platform
The Chinese government has rolled out a novel public blockchain infrastructure platform spearheaded by Conflux Network, geared towards bolstering cross-border applications.
Named the “Ultra-Large Scale Blockchain Infrastructure Platform for the Belt and Road Initiative,” this initiative aims to foster collaboration along the Belt and Road Initiative through a public blockchain framework.
Managed by the Conflux Foundation, known as the Shanghai Tree-Graph Blockchain Research Institute, Conflux Network operates this multichain blockchain ecosystem.
Despite China’s historical skepticism towards cryptocurrencies, this governmental initiative signifies a departure from its rigid stance. Since 2017, China has implemented stringent measures to regulate the crypto sector, including the closure of domestic Bitcoin exchanges. Yet, a Vietnamese venture capital firm’s report revealed that 33.3% of Chinese investors still hold significant stablecoin reserves, trailing only behind Vietnam.
Amidst regulatory hurdles, Chinese traders have found ways to navigate the crypto ban, largely favoring centralized crypto exchanges. In 2021, Beijing escalated its crackdown by prohibiting crypto trading and mining, alongside banning offshore exchanges. Prior to this crackdown, China dominated a substantial portion of the global Bitcoin mining hash rate.
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In response to growing concerns about money laundering, China is poised to amend its Anti-Money Laundering (AML) regulations to encompass cryptocurrency transactions. This amendment, the first of its kind since 2007, seeks to enforce stricter measures against crypto-related money laundering activities.
Recent reports have shed light on the role of “virtual currency trading platforms” in facilitating a $2.2 billion underground banking operation to circumvent the country’s forex restrictions.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
