China is warming up to blockchain
Finally, China is warming up to blockchain businesses.
More and more China based blockchain projects are being approved by the local and provincial government bodies. Some of these projects are for the government bodies themselves.
The Past
Not long ago, on September 4, 2017, the People’s Bank of China, several central government agencies and financial regulators together issued a joint statement that Initial Coin Offerings (ICO) are banned in China. Soon after that the Chinese regulators shut down all existing cryptocurrency exchanges in China. That crackdown resulted in Binance moving away its HQ and servers from China to elsewhere.
That is water under the bridge now.
Regulations and Regulatory Actions
The Cyberspace Administration of China (CAC) recently published its first batch of registered blockchain service providers. The list could be viewed here in Chinese language: BlockchainServiceProviders. There are a total of 197 companies on the list and it includes some household names such as Alibaba, Baidu and Tencent. These blockchain service providers are registered pursuant to the Regulations on the Management of Blockchain Information Services.
For the purposes of the regulations, the regulators have divided blockchain project into two categories: Blockchain Service Providers and Blockchain Technology Providers. The intent behind such categorization is not clear though.
During their meetings with the registered companies, the regulators expressed their dislike for two things specifically: 1. Public blockchains, where anyone can access, read and write anything they like and 2. ICO related scams. Their main goal is to ensure any information that could potentially harm the national security and stability, does not spread on the internet through blockchain.
The message is clear: Companies should prefer private or enterprise blockchain rather than public blockchain.
Government Bodies As Clients
There is a big demand for blockchain projects among the local and provincial government bodies because almost every one of them want to use highly advanced technology such as ai, big data, cloud computing and blockchain. With more flexibility at local government level than at the private sector level, more and more companies are finding it easier to secure government projects.
According to one of the company representative, once you establish a solid relationship with the government body, business opportunities come, along with perks such as tax breaks!
Maybe China will stick it out before being forced into the economy. I think both the US and China are feeling blockchain pressure and there is some deep influence in the trade war owed to technology. AI has got to be in there. One of the things keeping China in the crypto hunt has got to be Alibaba's daringness.
Yes, agreed. I am sure governments do suffer from FOMO. Losing out to other countries in this competitive world can be both frustrating and embarrassing.
Funny cause they already have so much.
Hello my dear @devann, great post you are sharing. Congratulations!
Wooo is incredible as this technology is breaking through, breaking down posile obstacles that try to stop it but I think that is no longer possible, governments must adapt to the new world where surely blockchain-based projects will increase.
I'm very happy to read your work.
Take care
Dear @fucho80,
Yes, eventually the world has to embrace DLT as more and more companies and countries are adopting it. It is a slow and steady process but the final outcome seem to be clearer now.
Thanks for the note. Stay blessed.
Sure friend, it's only a matter of time and even the detractors of this technology will have to join.
Hi @devann
The Asian giant realized and studied very well they know the reach that the blockchain and the crypto that in turn are immersed in these blockchain, they will always seek also the way to integrate into the economic world. Now my thought is that it will be a double-edged sword, everything will be registered and easily accessible to search and track any transaction.
But they also know that, now it's only time to wait for that emerging market that will come out of there.
Greetings friend from Venezuela a country that struggles not to be abandoned
China is only allowing permissioned and private blockchain, which makes tracing easier.
To a large extent China cannot follow the democratic processes of western countries because of its own unique position. It will be a disaster considering that China has a population of 1.4 billion people and has just started opening up to the world. This requires guided and staggered opening up as the country matures.
Since China will certainly become a world leader in many things replacing countries like the US and others, my only hope is that China will play a positive role in the development of other weaker countries for a win win outcome, rather than bank roll only its selfish agenda.
Stay blessed.
Dear @devann
Great choice of topic buddy. Seriously I've been wondering for quite some time why China is so hostile towards crypto.
I fully understand, that they want to have everything created and controled by them. But separating entire country from blockchain technology (instead of using it for their own purposes) seem to be a dead end.
I presume that you can read Chinese?
Interesting read. Upvoted already.
Yours
Piotr
Dear Piotr
I cannot read Chinese. I included that because there wasn't any in English and thought at least I should include the Chinese version for the benefit of those who can read Chinese.
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