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📌 Chinese government launches public blockchain infrastructure platform led by Conflux Network

The Chinese government has launched a new public blockchain infrastructure platform led by Conflux Network. Blockchain

– The Chinese government has launched a new public blockchain infrastructure platform led by Conflux Network.

According to Conflux Network’s April 1 announcement, the new platform, dubbed the “Ultra Large-Scale Blockchain Infrastructure Platform for the Belt and Road Initiative”. It aims to provide a basic public blockchain for cross-border applications.

The main focus of this project is to build a public blockchain infrastructure platform. This platform can support the implementation of cross-border cooperation projects under the “One Belt, One Road” initiative. The platform will serve as a basis for developing applications that demonstrate cross-border cooperation.”

The Conflux network is a multi-chain blockchain ecosystem operated by the Conflux Foundation, also known as the Shanghai Treegraph Blockchain Institute.

Despite mainland China’s hostility towards cryptocurrencies, the government’s blockchain initiative has come to fruition. China has tightened its grip on the crypto industry, at least since the government ordered the closure of Chinese bitcoin exchanges in 2017.

According to a December 2023 report by Vietnamese venture capital firm Kyros Ventures, 33.3 percent of Chinese investors hold large amounts of stablecoins, second only to 58.6 percent of Vietnamese investors, despite the cryptocurrency trading ban.

Mainland traders are finding ways around the trading ban: a Kyros Ventures report shows that most mainland Chinese investors prefer to trade on centralized cryptocurrency exchanges (CEX).

Beijing banned cryptocurrency trading and mining in 2021 and prohibited offshore exchanges from offering their services in the country; prior to the 2021 ban, China controlled two-thirds of bitcoin hashing capacity.

Amid calls for greater scrutiny of the industry, China plans to make significant changes to its anti-money laundering (AML) regulations, including for cryptocurrency-related transactions.

The amendments are the first major revision of China’s AML rules since 2007 and are aimed at introducing stricter rules to combat cryptocurrency-related money laundering.

According to the Dec. 24 report, so-called “virtual currency trading platforms” helped conduct $2.2 billion worth of underground banking transactions to circumvent domestic currency regulations.

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