The cryptocurrency space in China is becoming increasingly more positive as China’s cyber-related regulatory agency, the Cyber Space Management Bureau, released a list containing 197 approved blockchain registered service providers, according to their notice published on March 30.
The list contained leading Chinese IT companies such as Tencent, Alibaba, and Baidu, as well as financial institutions including China Zheshang Bank and Ping An, a major insurance company.
Chinese Regulators Approve 2 Crypto Projects
What’s really interesting about this list is that it included two virtual currency projects. The first, VeChain (VET), is a well-known crypto project focusing on blockchain-enabled supply chain management services. The second, ParcelX (GPX), has not yet launched but will be a crypto-based parcel delivery service.
According to the notice they posted, the commercial use of blockchains by individuals or institutions requires approval by the Cyber Space Management Bureau.
Therefore, the fact that VeChain and ParcelX have been approved by the Bureau is fantastic news, as it validates these crypto projects and permits them to operate commercially within China.
The Bureau notice also states that the agency will seek out more services subject to this regulation and inform the relevant individuals and institutions that need to apply.
All in all, it appears that Chinese regulators are legitimizing the cryptocurrency industry in China, as they have actually approved 2 cryptocurrency projects and are actively seeking others to apply for regulation.
China’s Massive Blockchain Industry
According to data from China.org.cn, the number of actively progressing blockchain projects in China as of November last year is 263, which equates to 25% of blockchain projects worldwide. This is allegedly the world’s largest number of blockchain projects in one country, making China astonishingly fertile ground for the industry.
The publication also claims that China is the country with the highest use of blockchains. Therefore, it can be expected that a wide array of blockchain companies did not make the Cyber Space Management Bureau blockchain companies list this time around, and will be sought out in the near future.
All in all, while the cryptocurrency space has been rather negative in China in the past, it appears to be improving with the establishment of more crypto-friendly regulations and support for the development of blockchain technology.
For instance, as previously reported by IIB, one of China’s largest shipbuilding conglomerates, the China Shipbuilding Industry Company Limited (CSICL), is adopting blockchain technology for supply chain management.
Also, China’s FinTech Special Zone is focusing on blockchains in Guangdong Province, as they implement blockchain technology into Shenzhen’s subway systems.
What do you think about the Chinese blockchain industry? Which country will come out on top as the leader in blockchain technology, innovation, and adoption? Let us know what you think in the comment section below.