Conflux Network partners with Chinese government to initiate public blockchain infrastructure platform

The Conflux Network, operated by the Conflux Foundation, has announced the launch of a new public blockchain infrastructure platform in China. The platform, called the “Ultra-Large Scale Blockchain Infrastructure Platform for the Belt and Road Initiative,” is designed to provide a public blockchain for cross-border applications. This move by the Chinese government is surprising considering its previous hostility towards cryptocurrencies. Since 2017, China has been tightening its control over the crypto industry, forcing Chinese Bitcoin exchanges to shut down. However, despite the ban on crypto trading, a significant number of Chinese investors still hold stablecoins. Traders in mainland China have found ways to bypass the ban and continue trading on centralized crypto exchanges. In 2021, Beijing banned crypto trading and mining and prohibited offshore exchanges from operating in the country. China was previously responsible for two-thirds of the total Bitcoin mining hashing power. In response to calls for greater industry scrutiny, China is planning to amend its Anti-Money Laundering regulations to include cryptocurrency-related transactions. This amendment aims to impose stricter guidelines to prevent crypto-related money laundering. It has been reported that “virtual currency trading platforms” were involved in a $2.2 billion underground banking operation that bypassed China’s forex restrictions. Additionally, a recent report revealed that the carbon emissions from the Bitcoin network increased by 17% after China’s ban on crypto mining.