Reportedly, over 89% of Chinese blockchain companies are attempting to create their own cryptocurrencies.

In recent times, China has been strictly regulating the local blockchain industry. A recent report by the state-owned CCTV mentioned a statistic that the vast majority of blockchain companies in China are focused on cryptocurrencies rather than blockchain technology itself, with the percentage as high as 89%.

According to Zhu Yedong, chairman of the Beijing Blockchain Technology Application Association (BBAA), as revealed in a report by the "Blockchain Blue Book" jointly compiled by five local financial and technological institutions, there are 28,000 blockchain companies in China.

The authors of this Blue Book include the Chinese Academy of Social Sciences, the China Payment and Clearing Association, the Beijing Blockchain Technology Application Association, and the Social Science Literature Publishing House.

The chairman of BBAA stated:

Out of the 28,000 blockchain companies in China, only 4,000 are focused on pure blockchain technology and DLT, while as many as 25,000 companies are attempting to issue their own cryptocurrency or tokens. Our first priority should be to guard against risks, rather than promoting these illegal fundraising and financial fraud companies as blockchain application enterprises or high-tech enterprises.

According to the data, approximately over 50% of the companies are located in Guangdong Province, totaling 16,353, and the report also emphasized that the scale of the black industry related to online fraud in China has reached 100 billion RMB, approximately 15.6 billion US dollars. Xie Shouguang, president of the Social Science Literature Publishing House, stated:

Therefore, financial supervision is particularly important in this situation. However, regulation itself also requires huge costs, so through technology, especially including big data, blockchain, and artificial intelligence technologies, the efficiency of our supervision has greatly improved today.

China's actions in the blockchain industry have attracted global attention, starting from President Xi Jinping designating blockchain as a key national development technology, then deciding to launch the country's digital currency shortly after, and more recently cracking down on the country's exchanges and strictly regulating improper cryptocurrencies. News reports are abundant, and the outcome remains to be seen, so we should continue to follow closely.

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