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Tencent Partners With Chinese Government Officials to Combat Blockchain Fraud

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On June 21st, around 20 institutions – led by technology giant Tencent, token trading platform Huobi, and the China Blockchain Research Center – formed a partnership with Chinese government officials to establish the China Blockchain Security Alliance. The announcement was made during the first China Blockchain Security Summit, held in Beijing.

The Alliance’s mission is to ensure the healthy and sustainable development of the blockchain ecosystem and protect it from fraud. The main sponsor of the alliance is Tencent Security, which attended the conference for the first time this year. The announcement was made by Tencent vice president Bin Ma, who said:

We are willing to participate in blockchain’s industrial construction in the name of Tencent. We hope to contribute to blockchain’s security in China,

The forum, hosted by the government-backed China Technology Market Association (CTMA), aimed to unite organizations to protect “the healthy development of blockchain industry,” according to a report from ChinaNews, a state-owned media outlet.

The alliance will also comprise of government advisory agencies, network security firms and blockchain-related organizations in China.

Promotion of Healthy Blockchain Development

According to the publication, the alliance will aim at establishing long-term mechanisms for the secure development of the country’s blockchain ecosystem. Additionally, the alliance will be tasked with fighting illicit and fraudulent activities that are rampant in the blockchain space – inclusive of the pyramid schemes that have become a menace in the blockchain and crypto spaces.

However, despite the setbacks in the blockchain industry, the Chinese government has been at the forefront of promoting the technology with top level policies. However, the government has ruthlessly cracked down on cryptocurrencies.

Cointelegraph reports that recently, to prove that the government is placing blockchain at the fore of its technological innovation policy, President Xi Jinping gave an example of blockchain as the new generation of technologies that are fueling breakthroughs in the reconstruction of the global innovation map, and reshaping economic spheres.

China is the leader when it comes to blockchain startups and records the highest number of blockchain patents in the world. Recently, China’s central bank announced it has developed a blockchain system that will digitize paper checks.

While the alliance will help standardize the blockchain space, the question of implicit potential technological monopoly remains unanswered. As the Summit involved leading tech giants and active blockchain industry participants, the Alliance may become a collective power that can influence industrial standard setting and resource allocation.

What’s your take on this new alliance? Please share with us in the comments section.

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