The Chinese blockchain market seems to be a very powerful driver for cryptocurrency adoption. This time, over 25,000 blockchain firms in China have tried to issue their own crypto tokens. This is according to a recent report released by financial and technology authorities in the country.
Chinese Companies Tried Issuing Cryptocurrencies
The report that was led by the central bank of China, explains that 89% of blockchain companies in the country might have tried to release cryptocurrencies to the market.
The report explains this is equal to around 25,000 companies compared to 4,000 that are focused only on distributed ledger technology (DLT).
China is becoming an important hub for cryptocurrency investment and development. There are several companies in the country that are expanding their services and trying to offer new products.
However, the Chinese market is highly regulated. They have imposed a total ban on Initial Coin Offerings (ICOs) and it has also been against Bitcoin (BTC) trading activities during the last few years.
At the moment, the government didn’t ban Bitcoin mining operations in the country. This is one of the regions in the world with the largest number of miners.
As per the report, there are more than 14,000 DLT-based firms that are located in the Guangdong province. Other companies are also located in Shenzhen, Beijing and Shanghai.
Furthermore, the report shows that the online fraud market in China has surpassed 100 billion Chinese yuan, or over $15.6 billion. Several crypto firms are just scams that aim at stealing users’ funds.
The Chinese government has also been pushing for wider blockchain and DLT adoption in the country. Xi Jinping, the President of China, urged for an acceleration in the adoption of blockchain technology.
This report would also help Chinese authorities understand how to regulate the emerging financial technology market and how to better deal with cryptocurrencies and blockchain technology.