The Conflux Network is part of the Chinese government’s new public blockchain infrastructure platform
Despite the mainland Chinese government’s stance against cryptocurrencies, the blockchain movement is moving forward.
Conflux Network is under the control of a new public blockchain infrastructure platform that the Chinese government has just created.
According to a Conflux Network post from April 1, the new platform, called the “Ultra-Large Scale Blockchain Infrastructure Platform for the Belt and Road Initiative,” will focus on providing a public blockchain for use in cross-border scenarios.
Developing a public blockchain infrastructure platform is the project’s primary goal. As part of the Belt and Road Initiative, this platform may facilitate the launch of cross-border cooperation initiatives. It will lay the groundwork for creating apps that highlight international cooperation.
The Shanghai Tree-Graph Blockchain Research Institute, better known as the Conflux Foundation, runs the Conflux Network, an ecosystem for many blockchains.
In spite of mainland China’s anti-crypto sentiment, the government’s blockchain effort is moving forward. Since the government of China forced Bitcoin exchanges in the country to shut down in 2017, the country has been increasingly controlling the cryptocurrency business.
In December 2023, research by the Vietnamese venture capital company Kyros Ventures ranked China at #3, with 33.3% of investors holding a considerable quantity of stablecoins, second only to Vietnam with 58.6%, despite the restriction on crypto trading in China.
Mainland Chinese traders have discovered methods to get around the trading prohibition. Kyros Ventures found that most of the country’s investors prefer to use centralized cryptocurrency exchanges.
In 2021, Beijing outlawed cryptocurrency trading and mining, as well as the services of offshore exchanges. Half of the world’s Bitcoin mining capacity was in China’s hands until the crypto crackdown stepped up in 2021.
China is about to revise its anti-money laundering (AML) laws in a big way to include bitcoin transactions, in response to demands for more industry oversight.
Stricter requirements to limit crypto-related money laundering are the goal of the change, which is the first substantial adjustment to China’s AML legislation since 2007.
A report surfaced on December 24, 2023, detailing how so-called “virtual currency trading platforms” aided in a $2.2 billion shadow banking operation that evaded the country’s FX controls.
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