OK Group, a blockchain technology firm behind cryptocurrency exchange OKEx, is expected to start its operations with Chinese authorities to combat money laundering employing blockchain technology.
The company’s settlement-focused subsidiary OKLink in collaboration with the Nanjing Public Research Institute to work on applying blockchain tech for AML purposes.
The institute revealed that the partnership will include in-depth cooperation with OKLink to market the mixing of blockchain technology for improving security and social governance. As a part of the agreement, the parties will form a search laboratory for exploring compliance strategies and systems implementing on-chain data analysis to combat illicit financial activity.
As per the official announcement, OKLink and Nanjing Public Security Research Institute also agreed to further deepen their cooperation within the blockchain industry.
Chinese cryptocurrency journalist Colin Wu outlined that the Chinese authorities are increasingly cooperating with the native cryptocurrency leaders. “To some extent, cracking down on fraudulent projects involving cryptocurrency can assist native police to obtain income, in order, they are also very motivated,” he explained.
The news comes amid a serious crackdown on the cryptocurrency industry in China as natives are putting restrictions on cryptocurrency trading activity and suspending operations within the country’s leading cryptocurrency mining hubs in recent months.