The Chinese government blockchain service provider is partnering with EY to implement Ethereum compliance tools

The Blockchain-based Service Network (BSN), the Chinese government-backed blockchain infrastructure provider, plans to offer blockchain analytics and financial audit services for Ethereum developers across its network through a new partnership with Big Four auditor Ernst & Young (EY).

The new products

The London-based accounting firm will provide Ethereum investors BSN's China two compliance products, EY OpsChain and EY Blockchain Analyzer, according to a press release. EY OpsChain will integrate procurement and traceability functions into BSN, where its users on Ethereum can perform procurement activities using tokens and smart contracts.

The EY Blockchain Analyzer will offer users blockchain analysis and audits of financial statements. The new compliance services could further increase China's efforts in the blockchain race against the United States.

More BSN users will be able to create and run blockchain projects across the network without worrying about compliance issues. "China is one of the largest markets in the world for blockchain technology, and although the EY teams have been operating there for several years, this is the EY organization's first big step in implementing the EY blockchain platform in a scalable way," he said. Paul Brody, global blockchain manager at EY, said in a statement.

Blockchain Service Network

BSN was co-founded by state-owned telecom giant China Mobile, UnionPay and fintech startup Red Date in April 2020. The project aims to provide cloud services and a standardized development environment for blockchain developers.

BSN is divided into two versions: a domestic one, in which only authorized blockchains are available, and a global one, which allows developers from all over the world to create or run decentralized applications (dapps) on public chains adapted to their development environment.

BSN has integrated Ethereum into its domestic version by making it an open and licensed blockchain, which could be controlled by a company. "Initial availability will focus on an open and licensed version of Ethereum in China with a future extension to a worldwide controlled access version of the Ethereum network when it becomes available," the statement said.

A step forward for the world economy

The move came after New York-based Ethereum hub ConsenSys partnered with BSN in January. This partnership aims to bring ConsenSys' corporate registry, Quorum, to China's national blockchain project.

EY has also joined the Financial Blockchain Shenzhen Consortium (FISCO), a Chinese non-profit organization dedicated to promoting the use of blockchain for financial applications. According to the statement, the auditor will use FISCO's platform to make its compliance services available to more users in China and other Asia Pacific regions.

“By offering both FISCO BCOS and Ethereum, EY professionals will serve clients in China and across the Asia-Pacific region and connect these users to the global blockchain,” Brody said. "I see it as a fundamental step towards connecting the world's largest economies through blockchain technology."