VeChain still popular in China, crypto media shutdown and OKEx goes global – Cointelegraph Magazine
This weekly roundup of news from Mainland China, Taiwan and Hong Kong attempts to present the most important news in the industry, including influential projects, changes in the regulatory landscape and blockchain integrations of ‘business.
It has been more than six months since the crackdown in China began and pressure from the top down government is still being applied. Most projects operating out of China find ways to get around regulations by focusing on the technology aspect, but few are in a very enviable position. Among other issues, finding talented people to hire will certainly become more difficult, as conservative-minded local citizens will have concerns about the safety and sustainability of the industry.
At home with new policies
Some projects, like VeChain, are taking the opportunity to focus on their blockchain technology as a service and are well positioned to continue their operations. Blockchain has always been seen as an important technology for China, especially when used for things like food security and other socially responsible applications.
Last week, the smart contract platform boldly participated in China’s famous International Import Expo, where it showcased its traceability system alongside longtime partners PwC. The exhibition was even larger than usual this year due to the 20th anniversary of China’s accession to the WTO. Chinese President Xi Jinping gave a speech via a video to celebrate the opening of the exhibition, noting as usual how China is opening and developing successfully.
During the 4th #CIIE, VeChain has joined @PwC in the discussion around Air Trace. We are proud to attend this great event and showcase our advantage in the development of low code blockchain, which will fuel larger digital initiatives in the future. ?? # CIIE2021 pic.twitter.com/jUb3HeUz5D
– VeChain Foundation (@vechainofficial) November 9, 2021
Enterprise solutions on the public blockchain were all the rage a few years ago, but there are now fewer and fewer competitors to VeChain, as most have switched to DeFi solutions or have simply fallen silent. The real challenge will be convincing Chinese organizations to adopt a truly public solution, rather than a consortium model without all the decentralized bells and whistles.
Tech giants like Alibaba and JD.com have their own private solutions that may be just close enough to real blockchain technology for public officials to hide the details.
Turn a new page
Gossip columns were abuzz after OKEx founder Star Xu’s LinkedIn status suddenly showed he was in San Francisco. The leader of the second largest exchange by volume had come under scrutiny this year given the tough regulations against the exchanges. Its abrupt arrival in the United States indicates that OK Group takes its divorce from China seriously and will be able to target new markets without fear of disruption by law enforcement. OKEx has seen strong growth over the past few months and is now pushing hard in the GameFi and NFT segments, hoping to gain an edge over the competition.
Huobi, on the other hand, appears to be banking on Singapore, where he hopes to rebound after a difficult third quarter 2021. Huobi Global announcement he was leaving the country, clearing the way for Huobi Singapore to make a compliant entry.
Users will have until March of next year to switch to the Huobi Singapore service, when their global accounts will be closed. Singapore has been a haven for many of the industry’s biggest players, relying on a progressive regulatory environment, high quality of life, and a multicultural atmosphere to make both English speakers and Chinese feel at home.
Continued crackdown on media and mining
On October 13, the major blockchain media companies received a notice from the Cyberspace Administration of China ordering them to cease operations. Among them were ChainNews and Block123, two of the more established platforms.
Alibaba Cloud servers shut down relevant services, disabling APP and web page. The Twitter and Telegram channels were naturally not affected, making outlets abroad one of the few places Chinese users could find information. This requires additional networking tools to bypass the Great Firewall, but should have the expected result of eliminating excessive retail speculation while allowing true tech users to continue to participate.
In other regulatory news, the Chinese government has warned State-owned companies should stay away from cryptocurrency mining activities. Many public services, such as power companies, telephone companies, and oil companies are still owned and operated by party-backed organizations.
Jobs in these companies offer many perks with perks and stability, but often come with lower wages than in the private sector. Corruption and clandestine deals have traditionally been an easy way for these employees to increase their income, but since Xi Jinping took office and made the fight against corruption a key issue, the risk of exposure has skyrocketed. Already, an official from Jiangxi has fallen victim to these repressions, and was expelled from the party and office.