- The Lingkun tool uses AI analysis to evaluate data for the Shenzhen authorities.
- Tencent controls WeChat, the largest instant messenger in China
In China, cryptocurrency is still not allowed to be used. Interestingly, the Tencent internet company recently launched a financial monitoring tool, which recently made it easier for the authorities in this country to locate substantial illegal activities. According to recent reports from 8BTC, the tool screened 39 enterprises that the Chinese authorities believe are involved in illegal activities.
The tool, “Lingkun”, used AI analysis to evaluate open information, reporting information, government data, and social media. In its search, there were many aircoins and crypto Ponzi schemes detected in China’s biggest city for technological advancements, Shenzhen. However, for the most part, many overseas cryptocurrency institutions in Shenzhen are fairly compliant.
The situation for cryptocurrency in China is a little odd. Bitcoin and cryptocurrency mining aren’t actually illegal, leaving the defined boundary of compliant a little difficult. Considering that the goal of Chinese authorities is to crack down on illegal activities, some of the cryptocurrency activity is included.
Tencent is in charge of WeChat and QQ, which is the largest instant messenger in China with 1.1 million users on a monthly basis. Most of the cryptocurrency activities end up taking place on social media platforms in China, like WeChat and QQ. However, Telegram’s software offers better encryption, which has led some consumers to move over to that platform instead.
The security infrastructure of Tencent has been used by Lingkun to cover most Chinese citizens. As a result, the tool managed to overcome a consistent regulatory problem impacting a shortage of “data, algorithm, and computing power,” using AI technology and the big data team.
Tencent released a data report regarding WeChat last year, including information about frequent emoticon use, sleep time, and video calling by users. There was some concern that WeChat was also using their technology to monitor the private data of users, but Tencent stated that the data is anonymous to ensure that it doesn’t link to any specific user.
On November 22nd this year, Shenzhen released a warning to the public, stating that local need to avoid illegal activities with cryptocurrency. The announcement also indicated that local enterprises were being investigated, based on their involvement in the cryptocurrency marketplace. Along with the illegal activities, the tool can also investigate the risk index for other financial categories, like foreign exchange and financing. In doing so, authorities in Shenzhen can get an early heads-up for any activities that various government departments should be aware of.