China's Government-Backed Conflux Network Launches Large-Scale Blockchain Platform Amid Crypto Clampdown
Summary:
Conflux Network, backed by the Chinese government, has unveiled an "Ultra-Large Scale Blockchain Infrastructure Platform for the Belt and Road Initiative", intended to facilitate cross-border applications. This comes despite China's strict stance on cryptocurrencies, and it notably banned crypto trading and mining in 2021. However, a significant 33.3% of Chinese investors still hold stablecoins, according to a report. The country also plans to update its Anti-Money Laundering regulations to include cryptocurrency-related transactions, marking the first such revision since 2007.
In an initiative spearheaded by Conflux Network, the Chinese government has kickstarted a novel public blockchain network. The platform, termed "Ultra-Large Scale Blockchain Infrastructure Platform for the Belt and Road Initiative," is designed to facilitate cross-border applications by serving as a foundational public blockchain, as revealed by an April 1 X post from Conflux Network.
The primary objective of this endeavor is the development of a public blockchain infrastructure platform, capable of buttressing the execution of cross-border cooperative projects related to the Belt and Road Initiative. The platform will lay the groundwork for crafting applications underlining international collaboration.
The Conflux Network is a multi-chain blockchain ecosystem run by Conflux Foundation, alternatively known as the Shanghai Tree-Graph Blockchain Research Institute.
Despite China's well-known hardline stance against cryptocurrencies, this governmental blockchain project has gone ahead. The country has been gradually increasing its clampdown on the crypto sector since at least 2017, the same year that saw a Chinese government directive ordering Bitcoin exchanges within the country to cease operations.
Even with trading restrictions, a significant 33.3% of Chinese investors hold a considerable quantity of stablecoins, securing them a position just below Vietnam, which stands at 58.6% as per a December 2023 report by Vietnamese venture capital firm Kyros Ventures.
Trading resilience in mainland China has led to the creation of strategies to evade the trading ban. According to the Kyros Ventures report, a majority of investors in the nation opt to trade on centralized crypto exchanges (CEXs).
In 2021, Beijing outlawed crypto trading and mining, further barring offshore exchanges from extending their services within the country. Prior to this intensifying crackdown, China commanded two-thirds of the total Bitcoin mining hashing power.
In response to increasing demands for more stringent industry oversight, China is preparing to significantly revise its Anti-Money Laundering (AML) regulations to encompass cryptocurrency-related transactions. With this being the first major adjustment to China's AML regulations since 2007, the amendment is intended to enforce more rigorous rules to combat money laundering associated with cryptocurrencies.
Reportedly, "virtual currency trading platforms" have played a role in enabling a clandestine banking operation worth $2.2 billion to circumvent the country's forex limitations, as per a report dated Dec. 24.
Published At
4/1/2024 3:51:39 PM
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