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Huobi Group Joins China’s Blockchain Service Network (BSN) Alliance

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Huobi Global has been chosen to be a leading member of a national network launched by the Chinese government in their attempt to establish blockchain as a service. 

According to a report published by Xinhua News Agency, Blockchain Service Network (BSN), China’s first blockchain alliance seeks to support small and medium-sized companies to develop blockchain-based solutions. 

Huobi Group’s primary role in the BSN alliance will be to provide blockchain research and training and to develop blockchain solutions.

The news come two years after Huobi announced shutdown of all trading services in China. It is alleged that Huobi, among other bitcoin in exchanges in China received “voluntary” shutdown orders from local authorities.

China’s Blockchain Service Network 

BSN aims to improve the blockchain sector layout and serve the development of the digital economy and smart cities. 

The State Information Center (SIC) organized the BSN’s first meeting. The meeting was held on 1st December with 14 partner companies that included Huobi Group, China UnionPay, China Mobile, WeBank, and China Merchants Bank.

According to the report, The Deputy Head of SIC, Zhang Xueying stated: 

“Featuring controllable security, independent innovation, openness, and inclusiveness, the network will effectively reduce the technical and economic threshold for the application of blockchain.”

He also added that the gradual adaptation of 5G, the Internet of Things, artificial intelligence, and other technologies would enable BSN to: 

“Provide high-quality and customized services for the development of smart cities and the digital economy, and help nurture a batch of new industries or new business models based on blockchain technology.”

Huobi Group Is Focused On Expanding Huobi China

Huobi Group recently became the first digital assets exchange to form a communist party committee through its subsidiary, Beijing Lianhuo Information Service. Private companies in China have, for the past few years, been using party committees as a way of seeking closer ties with the Chinese government. 

Huobi Group moved its operation to Singapore, but most of its activities are based in mainland China. This was after a major crackdown in 2017 that saw major crypto exchanges shutdown by chinese authorities. China Daily reported two years ago that China was carrying out a major crack down on crypto exchanges and shutting them down. Chinese local financial authorities issued a document that required all exchanges to halt new user registration and announce their plans to shut down by 15th October 2017.

Huobi joins Vechain (VET) and Parcel (GPX) as the only two approved crypto projects among the 197 registered blockchain-related companies that were shortlisted to operate commercially in China. 

Following the approval, VEchain CEO and co-founder Lu Yang, stated that the official registration would contribute to the development of the blockchain industry and more companies can formally apply to operate legally in China without stigma.

Wayne Jones
Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, I cover trendy issues on digital currencies.

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