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Senior Official Claims That 25,000 Chinese Blockchain Firms Tried to Issue Cryptos

By Jamie Green – Crypto Expert

A report titled the Bluebook of Blockchain was published on Thursday by five financial and technology authorities led by the Chinese central bank, outlining several fraudulent and illegal schemes in the Blockchain industry.

Yedong Zhu, president of government-backed nonprofit Beijing Blockchain Association, said in an interview with Chinese state media CCTV that 89%, an estimated 25,000 Chinese Blockchain firms may have tried to create and issue their own tokens whereas only 4000 are fully focused on Blockchain applications. Chinese organisations are unable to create and sell crypto on a blockchain and ICO’s, the most common crypto issuance process was deemed illegal. Despite that, however, crypto mining operations and possession of crypto assets in the country are still being carried out.

These new reports surfaced during the Chinese government’s recent crackdown on barred ICO and cryptocurrency trading. Major Chinese cities like Shanghai and Beijing have put out inspection plans with the idea to shut down any of the remaining crypto exchanges that you can use to buy and sell Bitcoin.

The situation has come to the point where Chinese authorities will shut down any marketing firms that promote crypto companies, to buy and sell Bitcoin and firms that disguise themselves as Blockchain companies to launch ICOs.

More than half the 25,000 Blockchain companies, according to the report, are based in the Guangdong province of southern China, right next to the Chinese Silicon Valley Shenzen. The rest of them run their operations from Shanghai and Beijing.

Zhu said went on to say that the government must ensure the blockchain firms that illegally raise capital and conduct financial frauds are excluded from the government blockchain support programs. It is hard to say if any cryptocurrencies will make it in the Chinese markets, but the technology is still young.

Unlike with China, you can head over to our platform to buy Bitcoin UK along with many other cryptocurrencies so check it out.

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