China, despite its ban on crypto-related transactions, has shown support for blockchain technology, with VeChain emerging as a major player in the region. VeChain has established partnerships with prominent Chinese companies such as Walmart China and the China Animal Health and Food Safety Alliance (CAFA).
This is a significant achievement considering China’s stance on cryptocurrency, as it issued a ban on financial institutions processing crypto transactions. However, VeChain has found common ground with China, as its office is located in Shanghai. China has been vocal about its support for blockchain technology in various industries.
The Certification Standard for Blockchain Service, implemented by the Shanghai Municipal Administration of Market Supervision and the Shanghai Certification Association on February 1st, 2022, has further contributed to VeChain’s presence in the region. The company has made significant strides in the food industry, partnering with Walmart China to revolutionize supply chain management. Walmart China utilizes VeChain’s proprietary toolchain suite to track products accurately throughout the entire cycle.
The success of this partnership has led to additional deals between VeChain and Walmart China, with the aim of enhancing customer trust and revolutionizing supply chain management. VeChain has also partnered with the China Animal Health and Food Safety Alliance, providing them with the necessary blockchain tools to record crucial stages of food products.
China’s interest in blockchain technology is seen as a way to provide a government-controlled monetary technology while limiting decentralized crypto systems. However, the nature of blockchain, with its decentralized nature, poses a challenge to China’s desire for control. This poses a threat to cyber sovereignty and government censorship.
While China seeks to maintain control over applications and developments, Hong Kong regulators are reportedly in talks with banks to provide banking services to crypto exchanges. In the US, discussions on crypto regulation are ongoing and nearing completion. Despite the concerns surrounding blockchain technology in various jurisdictions, VeChain continues to expand its influence and recently entered the Singapore market.