OK Group, a blockchain technology company that used to be behind the OKEx cryptocurrency exchange, will work with Chinese authorities to use blockchain technology to combat money laundering.
The company’s billing-focused subsidiary, OKLink, has partnered with the Nanjing Public Security Research Institute to work together on the application of blockchain technology for anti-money laundering purposes.
The institute announced that the partnership will include an in-depth collaboration with OKLink to advance blockchain technology integration to improve public safety and social governance. As part of the agreement, the parties will set up a research laboratory to study compliance strategies and systems to implement data analytics in the chain to combat illegal financial activity.
According to the announcement, OKLink and the Nanjing Public Security Research Institute also agreed to further deepen their collaboration in the blockchain industry.
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Chinese crypto journalist Colin Wu said the Chinese authorities are increasingly cooperating with local cryptocurrency leaders. “To some extent, cracking down on fraudulent projects with cryptocurrency can help the local police to generate revenue, so they are very motivated too,” he added.
The news comes amid a major crackdown on the cryptocurrency industry in China as local authorities have curtailed crypto trading activities and ceased operations in the country’s major crypto mining hubs in recent months.