Categories: Industry

Huobi Joins a Chinese State-Backed Blockchain Partnership

Cryptocurrency exchange Huobi has become one of the first members of the Blockchain Services Network (BSN), an industry alliance initiated by the State Information Center (SIC), as reported by local media outlets. The alliance is expected to be one of the leading local infrastructure services providers.

Huobi Coming Back to China

Singapore-based cryptocurrency exchange Huobi may be strengthening its ties with China, following a Beijing crypto crackdown that made domestic trading platforms to flee the country two years ago. The blockchain alliance it is about to enter is part of the State Information Center, a government think tank affiliate of the state economic management agency, called The National Development and Reform Commission. The major objective of the network is to offer infrastructure services platform that connects different blockchain networks, regions, and institutions.

Financial Services Providers, Telecoms and Banks Among the Partners

The event that announced the alliance members was held over the weekend and was organized in partnership with UnionPay and the State Information Center. The other BSN members forming the alliance are big-hitting card provider and financial services group UnionPay, state-owned telecoms groups China Mobile and China Telecom, together with two major domestic banks.

According to local news outlets, Huobi’s CEO Yuan Yu Ming was present at the event and expressed his content that Huobi had been accepted as a member of the BSN, and highlighted the “collaborative effort” with fellow members to promote blockchain education in China.

The Alliance to Spread Blockchain Technology Popularity

The founders of the BSN, will aim to enhance the development, deployment and connectivity of blockchain applications across various industries, and will seek to “promote the rapid development and popularization of blockchain technology” in China. Meanwhile, more than five local exchanges have ceased operating or have announced they will no longer serve domestic users this month, after regulators started a massive digital currency crack down by issuing a series of warnings and notices.

Various financial supervising authorities, among which the Chinese central bank, have in past weeks ordered cryptocurrency firms to close and warned investors to be attentive towards digital currencies.

Government Anti-Crypto Measures

Last week, Chinese exchange operators Bitsoda and Akdex halted their services, while Biss said this month it has ceased operations in the context of a government investigation. Another operator, Btuex said on Monday it will shut down as ordered by the Chinese government and will be “reopening in future to serve only overseas users”. Idax said on Sunday it will also no longer provide services to local users in China but will focus on users abroad.

The latest set of restrictive measures add up to the biggest cleanup of the sector since an initial Chinese clampdown in September 2017. Although exchanges that allow users to buy Bitcoin and Ether with fiat money were outlawed, over-the-counter platforms or services that deal with cryptocurrency assets continued to carry out uncontrolled trading activities in China.

Mark Ayesa

Mark manages our editorial team, social handles and is always on the lookout for great writing talent to contribute to our site. On a day-to-day basis he ensures the content on CryptoCurrency365.com is of the highest quality and also carries out extensive research on any current hot topics of the crypocurrency world for our writers.

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