Chinese Government Launches New Public Blockchain Infrastructure Platform

The Conflux Network is a multichain blockchain ecosystem operated by the Conflux Foundation, (photo: x @Conflux_Network)

JAKARTA - The Chinese government has launched a new public blockchain infrastructure platform led by Conflux Network. This new platform, which is named “Ultra-Large Scale Blockchain Infrastructure Platform for Trails and Roads Initiative.” The program aims to offer an underlying public blockchain for cross-border applications, according to an April 1 post by Conflux Network.

"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 Trails and Roads Initiative. It will be the basis for developing applications that demonstrate cross-border cooperation," Conflux said on the X platform .

The Conflux Network is a multichain blockchain ecosystem operated by the Conflux Foundation, also known as the Shanghai-Tree Blockchain Research Institute.

This government blockchain initiative comes despite China's unfriendly attitude towards cryptocurrencies. China has begun tightening control over the crypto industry since at least 2017 when the government ordered Chinese Bitcoin exchanges to close.

Despite the crypto trading ban, 33.3% of Chinese investors hold large amounts of stablecoins, placing them in second place after Vietnam, with 58.6%, according to a December 2023 report by Vietnamese venture capital firm Kyros Ventures.

Traders in mainland China have found ways to circumvent trade bans. The majority of investors in the country choose to trade on centralized crypto exchanges, according to a Kyros Ventures report.

Beijing banned crypto trading and mining in 2021 and banned overseas exchanges from offering their services in the country. Before the tightening of crypto bans in 2021, China also controlled two-thirds of Bitcoin's total mining hashing power.

Amid calls for greater industry oversight, China will make major amendments to its Anti-Money Laundering (AML) regulations to include cryptocurrency-related transactions.

The amendment, which is the first major revision to China's AML regulations since 2007, aims to impose stricter guidelines to combat crypto-related money laundering.

The so-called “virtual currency trading” platform helped facilitate underground banking operations worth 34.876 billion rupiah to circumvent the country's forex restrictions, according to a December 24, 2023 report.