It’s been quite a tough time for the cryptocurrency community due to the whole China-against-Bitcoin thing, as a result of which the top cryptocurrency price has fallen. On top of that, according to undisclosed sources, the Chinese government has officially decided to crack down on all Bitcoin and cryptocurrency trading, not just commercial exchanges. However, this was not the end of the restrictions. Beijing News reported that executives of Chinese Bitcoin trading platforms may not leave the country, per industry insiders.
Now China launches a research lab with the goal of promoting advances in blockchain technology that do not involve ICOs or cryptocurrency trading, as reported by ethnews.com. Thus, China’s Ministry of Industry and Information Technology has launched the Trusted Blockchain Open Lab to foster developments in the blockchain space.
As reported, lhe lab is operated as part of the China Academy of Information and Communications Technology (CAICT), a research institution within the Ministry. According to the China Economic Review, the CAICT is also building a platform on which blockchain firms and other experts can cooperate in exploring different applications of the technology.
The creation of the lab suggests that the government sees no conflict between the recent crackdown on ICOs and cryptocurrency trading and the exploration of blockchain technology.
The ban should not prevent relevant financial technology companies, industry bodies and other technology firms from continuing their research into blockchain technology.
Director of the Institute of Finance of the PBoC
The man also argues that financial technology firms stand to benefit from exploring a wide range of blockchain applications aside from cryptocurrency, but that the degree of abuse and criminal activity in the field makes enhanced government supervision necessary.