89% of Chinese Blockchain Firms Have Tried to Issue Crypto

blockchain china

89% of China’s blockchain firms have allegedly tried to create their own cryptocurrency, according to a senior exec at a local blockchain association.

According to the state-run CCTV on Nov. 21, Yedong Zhu, the president of the Beijing Blockchain Technology Application Association (BBAA), revealed that the vast majority of blockchain industry in China is focused on tokens, not blockchain.

In addition to Zhu’s remarks, the report by CCTV covered a new study led by the People’s Bank of China (PBoC).

Co-authored by five local financial and technology authorities, the “Bluebook on Blockchain” report reveals that there are 28,000 blockchain enterprises in China.

The authors of the “bluebook” included the Chinese Academy of Social Sciences, the Payment and Clearing Association of China, the Beijing Blockchain Technology Application Association and Social Sciences Academic Press.

BBAA president: 4,000 out of 28,000 Chinese DLT firms are focused on pure DLT
According to the BBAA president, only 4,000 Chinese blockchain companies are focused on pure blockchain technology, while as many as 25,000 have purportedly tried to issue their own cryptocurrency or token.

The news comes amidst the recently sparked Chinese push into blockchain technology development, which was triggered by President Xi Jinping’s call to embrace blockchain in October.

The push was accompanied by a renewed wave of pressure on local crypto-related businesses. On Nov. 21, the PBoC’s Shanghai unit announced it was taking action against entities allegedly involved in trading cryptocurrencies such as Bitcoin (BTC). On Nov. 22, authorities in Shenzhen province claimed that 39 exchanges fell afoul of China’s cryptocurrency trading ban.

State-led publications have emphasized that the country’s blockchain push should be limited purely to blockchain technology, and not include cryptocurrency-related initiatives.

More than 50% of blockchain enterprises are located in Guangdong province
The majority of such companies are located in the Guangdong and Shenzhen provinces.

Additionally, the report claims that the scales of the “black industry” associated with online fraud in China has reached 100 billion Chinese yuan ($15.6 billion.)

Source: cointelegraph.com

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