OK Group said that it will collaborate with Nanjing police to investigate the usage of blockchain in anti-money laundering operations.
According to a corporate press release, the company’s Oklink subsidiary will focus on blockchain applications for “public security and social governance.” The alliance, according to an Oklink spokesman, is intended to combat money laundering rather than routine policing.
Despite China’s recent crackdown on crypto mining and trade, the government continues to embrace blockchain technology. China’s current Five Year Plan, released in March, designated blockchain as a strategic technology.
According to the announcement, Oklink and Nanjing’s Public Security Bureau will establish a research and development center focusing on on-chain data analysis, risk control, and talent training.
The lab is named after Oklink’s flagship security product, Chaintelligence, which can be used to trace down unlawfully stolen cryptocurrency. Chaintelligence claims to have assisted police in five Chinese provinces in cracking “dozens” of cases, resulting in the recovery of 10 billion yuan ($1.5 billion) in assets.
According to Chinese reporter Colin Wu on Twitter, Chinese police authorities are “very motivated” to break crypto frauds and monitor illegally obtained monies because it allows them to gain money for their departments.
OK Group runs one of China’s largest crypto exchanges, Okcoin, which was founded in 2013 by OKEx founder Mingxing “Star” Xu. Xu filed paperwork to close Okcoin’s Beijing office last month.