In collaboration with Conflux Network, the Chinese government has introduced a new public blockchain infrastructure named “Ultra-Large Scale Blockchain Infrastructure Platform for the Belt and Road Initiative.”
According to a local report, this platform is designed to serve as the foundation for developing cross-border applications, aligning with the objectives of the Belt and Road Initiative.
On April 1, Conflux Network emphasized the platform’s role in supporting cross-border cooperation projects.
The main focus of the project is to create a public blockchain infrastructure platform. This platform will be able to support the implementation of cross-border cooperation projects along the Belt and Road Initiative. It will provide the base for developing applications that… https://t.co/MkWgRY2G8A
— Conflux Network Official (@Conflux_Network) April 1, 2024
Conflux Network Spearheads the Project
Operated by the Conflux Foundation, also known as the Shanghai Tree-Graph Blockchain Research Institute, Conflux Network is at the forefront of this initiative. The project aims to establish a public blockchain infrastructure capable of accommodating applications that facilitate collaboration across nations.
Despite China’s restrictive stance on cryptocurrency trading and mining, this move marks a significant step towards embracing blockchain technology for practical and international use.
Cryptocurrency in China: Regulations and Adaptations
Stringent regulations have marked China’s engagement with the cryptocurrency market. The government initiated a crackdown on the crypto industry in 2017, ordering the closure of Bitcoin exchanges. This was followed by a complete ban on crypto trading and mining in 2021, and offshore exchanges were prohibited from offering services within the country. Before these measures, China accounted for two-thirds of the world’s Bitcoin mining hashing power.
Despite these restrictions, a report by Vietnamese venture capital firm Kyros Ventures in December 2023 revealed that 33.3% of Chinese investors hold a significant amount of stablecoins, ranking second after Vietnam. This indicates an ongoing interest and participation in the cryptocurrency market among Chinese investors, who predominantly trade on centralized crypto exchanges to circumvent the ban.
Additionally, China is updating its Anti-Money Laundering (AML) regulations to include cryptocurrency-related transactions. This amendment, the first significant overhaul since 2007, aims to tighten measures against crypto-related money laundering following reports of virtual currency trading platforms facilitating substantial underground banking operations.
