Could China Finally Be Getting Cozy on Crypto Again? aelf (ELF) Token Gets Accreditation
The Chinese government appears to have finally relaxed its stringent stance on cryptocurrency. This follows the historic certification of the decentralized cloud-computing network, aelf (ELF) by a government agency.
CESI accredits Aelf
Aelf earned this upon passing the Standard Blockchain System Function Test, a China Electronics Technology Standardization Institute-run test. The network is the first and the only so far to receive the certification.
With the certification, aelf has undoubtedly satisfied the government’s mandate on stability, framework and basic performance tests. Any accreditation by CESI also acts as a mark of quality and gives potential partners the confidence to work with the cloud-computing network.
CESI, which falls under the Ministry of Industry and Information Technology, has previously certified 30 entities, including Tencent and Alibaba’s Alipay. Among them though, aelf is the only company that is directly into crypto.
The platform network uses cloud-computing technology to boost scalability and its testnet already has over 15,000 TPS. The platform held a private ICO in December 2017 and only admitted verified investors.
According to its CEO and founder, Ma Haobo, earning CESI certification is a testament to their quality and main ability in the Blockchain industry. The platform now has the full trust of the government to operate as it is expected.
China has never been openly friendly towards digital assets
It is clear that how the Chinese government treats the burgeoning industry is far more impressive than its western counterparts. The standards and regulations as well as all the subsidies it offers go a long way in helping shape its development.
aelf is the first Blockchain-based project to earn CESI certification, although the tests didn’t include ELF tokens. But regardless of that, this latest certification could mean that it is now doing a lot more than just that. It is an indication that perhaps the Chinese are starting to soften the stance towards cryptocurrencies.
It should, however, go on record that China has never shied away from supporting the Blockchain technology, even though it seemingly doesn’t tolerate crypto exchanges. In September 2018, it offered 30% of all the finances needed to set up the $1.6 billion Blockchain incubator. That was after shutting down all domestic exchanges, including Huobi, OKEx, and Binance.
China also ranks among the friendliest locations among cryptocurrency miners. A majority of the world’s largest miners are based in the country. The authorities, however, don’t condone any chatter on crypto online, as manifested by the shutdown of WeChat.
Could there be a change in attitude in the offing?
The platform’s co-founder, Zhuling Chen, believes that the Chinese government could be lessening its tough stance on cryptocurrencies. According to him, regulators seem to have finally accepted that cryptos are here for good, especially after seeing Facebook unveil Libra coin.
If indeed the government is now getting cozy towards digital assets, then these assets will most certainly find a home in China. Just recently, a local court found that Bitcoin (BTC) has enough grounds to be termed a commodity. This alone, according to Analyst Cao Yin, is a sign that financial authorities are finally accepting digital currencies.
However, not everyone agrees
CESI, unlike MIIT, only has an advisory role and mostly, none of its regulations are legally binding. This, therefore, means that China might not have finally loosened its hardline stance on the assets.
When all’s said and done, however, it is hard to gauge what long-term effects await aelf in China. We can only hope and pray that it is the start of good things.