New and Exciting Blockchain Developments In China

With the People's Republic of China gradually attempting to go back to normalcy after a difficult quarantine period, some new and exciting blockchain projects are being announced. Let's not forget that China has resolved to become a global leader in blockchain development even though the Communist Party generally prohibits circulation and trading of cryptocurrencies; nonetheless, exchange platform Binance recently launched a research center in Shanghai.

The Blockchain Research Institute is an initiative managed under the auspice of the Binance Academy; it seeks to establish a think-tank for blockchain development while at the same time funding tech startups. The center is located in the Lingang district of Shanghai, an area where quite a few financial technology companies have been setting up shop in recent years.

Cryptocurrency market analysts believe that Binance is trying various approaches to break into the Chinese market despite all the restrictions imposed by the government. There is an interesting dichotomy at play; while China insists that the government's sole intention is to focus on distribute ledger and smart contract applications, analysts are not convinced that the Communist Party will completely ignore digital currencies. It is more likely to think of China as a country where tokens will be heavily regulated but not altogether prohibited, and it is clear that Binance wants to be a well-established company when this happens.

A few years ago, Binance attempted to open a trading office in mainland China, but it lacked the political connections to do so. The company is undoubtedly the most prominent cryptocurrency exchange platform in Asia; its recent $50 million investment in establishing operations in India, a country that is pretty liberal with regard to cryptocurrency use and adoption, underscores Binance's strong positioning in the continent.

In the end, Binance seems to be making all the right moves in China. Should the company succeed in developing major projects with the approval of the Communist Party, Binance will be in a very favorable spot for the near future, and it will be able to take advantage of any regulatory changes that will make it easier for cryptocurrencies to circulate in the lucrative Chinese market.