A 1,000 Yuan Blockchain Business License Now Hyped Up To 100,000 CNY
It is reported that some people can still find their way to the bitcoin industry and earn a full bucket in the recent bitcoin sluggish, such as providing ICO Whitepaper ghostwriting service and assisting in getting business license for blockchain enterprises.
While Alibaba’s Taobao has recently removed all ICO whitepaper ghostwriting services for blockchain projects. That said, sophisticated Chinese businessman can always find a ghostwriter if they want.
For these blockchain-related business, a business license issued by the industry and commerce administration authorities that allow individuals or companies to conduct certain business is a must for their compliance operation. The ICO ban last September in China makes these blockchain startups panic. Some headed overseas to get an offshore license; others manage to get business license at home.
The second half of year 2017 saw the surging of registration for blockchain-related business license. According to statistics from Internet Financial News Center, the majority of enterprises whose names contain the buzzword “blockchain” are newly established less than one year, and the number reaches up to 4,266, most of which are located in Guangdong. A large number of blockchain companies are flooding in. However, it came to a stop in Feb 2018. Censorship and approval for blockchain business license was suspended in the country for some reason, as regional business registration websites shew. It means that no more blockchain companies would spring up for a period.
What’s so special about such a license?
The business scope regulated in the previous blockchain business license includes technology development, big data R&D, E-Money, in-game currency, etc. With such a license in hand, blockchain-related or crypto-related business can be operated, otherwise, companies have to bear legal risks.
The entrance has been shut down, but more want to find way into this industry. A new business thus emerged – license assignment. Searching “blockchain business license” on Alibaba’s Taobao e-commerce platform, license assignment info would pop up. As for the price for “buying” a blockchain license, a Taobao shop owner offered the price up to 100,000 yuan ($ 15,900).
As an insider disclosed, such license selling & purchasing business mainly centers in first-tier cities like Beijing, Shanghai, Guangzhou and Shenzhen with quite secret transaction procedures. And intermediary agent would charge expensive commission fees.
Actually a normal business license costs only a few thousand yuan, but now it has been hyped to 100,000 yuan, even higher.
What “bonus” a blockchain license could bring to the company?
A company with the keyword “blockchain” in its name could easily get financing or stocks going crazy for listed companies. For an instance, Long Island Iced Tea Corp. brutally changed its name to Long Blockchain Corp (NASDAQ: LTEA) at the end of last year, and its stock spiked 183%.
The capital market is extremely excited at the buzzword blockchain. A blockchain business license might enable the holder to have the chance to get rich overnight, so more companies are lining up for a license, or buying this admission ticket at high price. No one wanna drop out of this queue.
Japan used to be blockchain companies’ top choice to get a business license there, for it’s among the most friendly countries towards cryptocurrency. It issued the world’s first 11 licenses for cryptocurrency trading. At present, the competition is quite fierce as over 100 companies from all over the world are waiting for licenses in Japan.
A founder of a domestic blockchain startup disclosed, an intermediary agent claims they could help Chinese blockchain companies cooperate with local companies to acquire legal crypto-related license issued by Japanese government, and they’ll charge agent fees of 50 million yuan ($ 8 million) at least.
In this context, Belarus springs up to be the next blue ocean (uncontested market) for crypto/blockchain-related license issuance. It was reported that a few Chinese companies had turned to Belarus and successfully got their license there.