China Has Over 33,000 Blockchain-Related Companies Registered
More than 33,000 blockchain companies have been registered with the Chinese government as of December 2019, China Electronic Information Industry Development (CCID) announced on December 27.
According to the Research Report on the Development of Blockchain Enterprises in China by CCID, a research unit under the country’s Ministry of Industry and Information Technology, of the 33,000+ enterprises, blockchain-dedicated startups account for 57%, Internet companies that make foray into blockchain take up 23%, financial institutions deploying new blockchain business make up for 12%, and public listed companies 28%.
The Chinese government has focused on nurturing blockchain tech over the past few years, the push was more vigorous after the country’s president applauded the technology.
China has seen an exponential rise in the number of blockchain companies especially in 2018 with over 10,000 companies emerging in the year. More than half of the aforementioned blockchain enterprises have a capital quota of more than one million yuan when they are established and registered.
Despite this increase, China is not letting the industry run wild. Back in February, it implemented new regulations that require blockchain service providers to be registered with the Cyberspace Administration of China (CAC).
The first two batches of companies (197+309) to register and be regulated as “blockchain providers” have been announced this April and October, respectively; among others, the list featured local tech darlings like Alibaba, Tencent, Baidu and financial giants such as the Industrial and Commercial Bank of China, PingAn Bank, China UnionPay…
Gartner’s recent forecast estimates that blockchain will generate $3.1 trillion in new business value by 2030, with the technology set to be ready for more mainstream adoption through 2023. Chinese companies are acting fast to explore the tech.
Indeed, the country’s blockchain industry still has problems such as a severe shortage of talents, lack of innovative breakthroughs, difficulties in fundraising for startups, and lack of authoritative third-party evaluation.
Apart from that, the prevalence of fraud in China’s blockchain and cryptocurrency space has mainly hindered the industry’s development. A previous CCTV report claimed that only less than 10 percent of the alleged blockchain companies in the country actually use the technology. Regarding this, several major cities in the country have issued warnings on illegal activities under the name of blockchain and cryptocurrency.