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100 Blockchain Companies Deregistered, Blockchain Fever Cooling Down?

It was reported that as of April 20, 2018, 96 Chinese companies with the keyword “blockchain” in their names or specified in their business scope had been under deregistration, and 2 companies’ business licenses had been revoked for certain reasons, according statistics by Internet financial news center.

Blockchain has been in full swing since the Chinese New Year when big names with traditional VC background were debating over blockchain. In the following month, blockchain was again under the spotlight during the Two Sessions – the biggest political event in the country.

Cruel reality – the first batch of blockchain startups are falling

In December 2016, for the first time, the blockchain was written as a strategic technology and disruptive technology into the “The Thirteen-Five-Year Plan for National Information Industry” issued by the State Council. After that, a plurality of provinces and municipality in the country have released opinions on the financing supporting for blockchain enterprises. Early this month, $1.6 billion government-backed blockchain fund was launched in Hangzhou to invest in promising blockchain projects, in which 30 per cent, namely $480 million came from government-guided funds. And yesterday a 500 million government-guided blockchain fund was initiated in Shenzhen.

Driven by such favorable policies, blockchain is extremely attractive to companies, and thus numerous blockchain startups sprang up in short time. It is found that there are currently 8,387 registered blockchain-related enterprises in the country, increased by over 2,000 from 6,261 in February this year. Most of these blockchain companies are newly established in the second half year of 2017. While as of April 20, 2018, 96 Chinese companies with the keyword “blockchain” in their names or specified in their business scope had been cancelled registration, and 2 companies’ business licenses had been revoked for certain reasons.

It is mainly the Ctrl C + Ctrl V mode that leads to the falling of a bulk of blockchain companies. As Zhou Hongyi, CEO of Qihoo, said, “though blockchain is a recent buzzword, few must-have applications have been seen in the sector, except bitcoin.”

Sophisticated intermediary – provide registration service

According to a news of 8BTC last month, the registration mania came to a stop this February. Censorship and approval for blockchain business license was suspended in some regions of the country for some reason. Apparently, application for registering a blockchain company is reopened currently, as 2,000 more blockchain-related enterprises have emerged in recent two months.

“The registration for a blockchain company shall under strict censorship, and currently not all the applications could be approved,” an intermediary said. But he claimed that he had special approaches to get it done. And the fee for that? As much as 80,000 yuan ($13,000).

As Huo Xuewen, the Director of the Beijing Financial Bureau, said,

“All blockchain-related enterprises must manage the potential risks, and do not make illusioned concepts or bubbles to cheat financial consumers.”

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