At least 25,000 Of Chinese Blockchain Firms Tried To Issue Their Own Cryptos

At least 25,000 Chinese blockchain companies tried to issue their own cryptocurrencies according to a senior official of China.

On Nov. 21 a publication titled Bluebook of Blockchain was jointly published by five financial and technology authorities led by the central bank. The publication pinpoints the illegal and fraudulent schemes in the blockchain industry.

4,000 Of Them Are Fully Focused On Blockchain Applications

The report highlights that around 89 percent of the blockchain firms in China, approx to 25,000 might have tried to create and issue their own tokens. Although 4,000 of them are fully focused on blockchain applications.

The findings come amid China’s technology capital of Shenzhen’s government’s most recent warning against illegal activities related to cryptocurrencies.

Followed by identifying a total of 39 cryptocurrency exchanges in China by the authorities in Shenzhen failing on China’s cryptocurrency trading ban.

Reports claim that the exchanges operating illegally in China will face the consequences of a joint government effort to expel them.

‘Illegal Blockchain Firms Are Not To Be Included In Govt Support Blockchain Programs’

According to the report, more than half of the 28,000 blockchain companies are based in the Guangdong province of southern China, just next to Shenzhen, while the rest generally run their operations from Beijing and Shanghai.

“We need to make sure the blockchain firms that illegally raise funds and commit financial frauds are not included in the government blockchain support programs,” Yedong Zhu, president of the government-backed nonprofit Beijing Blockchain Application Association

The report is one of the three “bluebooks” that guides Chinese authorities on how to regulate the emerging fintech industry. The other two reports focus on technologies used by regulators and financial technologies.  

Source: Coindesk | National Business Daily | Image: Shutterstock

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