KuCoin Leads $10 Million Funding For Offshore Yuan-Issuer CNHC

Summary:
• CNHC is issued by Ethereum and Conflux, with the later enjoying special status as the only public blockchain allowed to operate in China.

CNHC, a stablecoin issuer, has received $10 million in a series A+ equity capital led by KuCoin Ventures, the VC arm of KuCoin exchange. Circle Ventures and IDG Capital were the other investors. CNHC’s stablecoin, CNH, is 1:1 backed and tethered to the Chinese offshore yuan, not the Chinese yuan, CNY. The newly acquired capital will be used by CNHC to expand the use of their stablecoin, particularly in the Asia-Pacific area.

CNHC, its growing allure and special place in China

When looking for compliant choices outside of the US-centric regulatory system, CNHC provides a workable alternative for both businesses and consumers. Notably, the dominance of the US dollar has been bolstered by the fact that most stablecoins are backed by the greenback.

The CNHC token is issued on the Ethereum and Conflux blockchains. While Ethereum is well-established and popular, it has issues with slow transaction speed and high gas fees. On the other hand, Conflux provides a faster and cheaper option, although it is not as well-known. Conflux also stands out since it is permitted to operate in China despite the country’s ban on trading in crypto assets. In fact, Conflux has an ongoing partnership with China Telecom for the development of blockchain-enabled SIM cards.

KuCoin has previously invested in Conflux, so this isn’t a new move. About a year ago, KuCoin Ventures put $10 million into the company. The fact that the exchange has invested again in such a brief timeframe demonstrates that Conflux is on the right growth path.

Hong Kong welcomes crypto as the US turns sour

Meanwhile, CNHC is making plans to relocate its current Cayman Islands-based headquarters to Hong Kong. Hong Kong, the country says, could soon become the global capital of cryptocurrencies, thanks to its friendly new legislation for the regulation of digital assets.

As the US is becoming more stringent to crypto companies, new markets are emerging elsewhere. For instance, the SEC has a long-running legal battle against XRP issuer, Ripple. And in a recent development, the New York State Attorney sued KuCoin last week on the grounds that it has been operating as an unlicensed issuer of securities in the US. American regulators are wary of giving crypto unrestricted access to the US financial system, but not everyone is willing to comply with US regulations.