The Chinese branch of cryptocurrency exchange Huobi has recently joined the Blockchain Services Network (BSN), an industry alliance initiated by the State Information Center (SIC) – a Chinese government policy-making think tank.
In addition to top crypto exchange Huobi, the world’s largest card issuer China UnionPay, state-backed telecom giants China Mobile and China Telecom, China Merchants Bank International, and Tencent-backed internet bank WeBank are also on the list of BSN’s first members.
BSN aims to provide a worldwide blockchain service infrastructure platform that bridges different blockchain networks, regions and institutions. Sharing the same philosophy with the internet, the platform will effectively lower the technical and economic threshold for blockchain developers, and accelerate the adoption of blockchain technology.
Blockchain adoption in full swing
Since the country’s president Xi Jinping told the communist party elite in October that he wanted the country to be a “rule maker” on blockchain, the whole country has moved into immediate actions in response to Xi’s call.
First, state media bombarded the public with reports on blockchain and the need to embrace the technology, blockchain-related assets and stocks rallied; and then government at all levels began to take actions to leverage blockchain in their government affairs or set up blockchain funds; in the meanwhile, enterprises are seizing the opportunity to put their blockchain product into practice.
The latest development over the weekend is that the vice governor of Hainan province where Huobi headquarters said that they hope the region could develop into a demonstration area for blockchain research and application, and further in digital asset trading. In terms of enterprise’s blockchain endeavor, e-commerce giant Alibaba has leveraged blockchain in the subway system covering 11 cities in the Yangtze River Delta (YRD) which is one of the richest regions in East Asia with about 1/10 of China’s population and 1/5 of the country’s GDP.
Crackdown on illegal crypto activities escalated
The country is charging at full speed ahead in becoming a blockchain juggernaut amid the tech frenzy led by president Xi. However, on the other side, the first application of blockchain technology – cryptocurrencies are under regulatory pressure as ever.
Government mouthpiece Xinhua News has recently reported the achievement of the crackdown on illegal activities involving cryptocurrency. In 2019, 6 domestic crypto exchanges have shut down and 203 platforms deployed out of the country have been blocked; about 10,000 Alipay and WeChat accounts involving in crypto trading have been closed, and more than 300 apps and social media accounts that promote crypto activities have been shuttered.
While big exchanges like HBO (Huobi, Binance and OKEx) are not being affected amid the crackdown, as they are trying to find ways to cooperate or keep good relations with the government.