Despite the impact of COVID-19 pandemic across most of the industries globally, the blockchain sector in China is booming. According to decentralized data provider LongHash, more than 10,000 new blockchain companies were registered in China so far this year.
Only been seven months into the year, and the fresh registration figure is already third-highest, only behind the previous two years.
China saw the setting up of the maximum number of blockchain companies in 2018 as the number hit 2019, but at the present growth rate, the number of newly registered companies will surpass that year, the crypto data platform pointed out.
#COVID19 hasn’t stopped China’s blockchain boom. 10,000+ new blockchain companies have been established in the first 7 months of 2020. Number of new companies on track to surpass those established in 2019. Chart 👇 pic.twitter.com/yP6XSeU8bl
— LongHash (@longhashdata) August 8, 2020
Introducing Axiory Intelligence, an Independent Market News-ProviderGo to article >>
Many blockchain startups are shutting down
In total, there are now 84,410 registered blockchain companies in China, out of which, only 29,340 are operational. Most of these startups are concentrated in the country’s Southeastern province of the Guangdong Province, following the southwestern Yunnan Province.
However, it is interesting to note that most of these blockchain startups had been set up with small capital as the report highlighted that most of these companies were registered only with 5,000 yuan (around $717). A few of these startups, however, has a registered capital of over 50,000 yuan ($7,175).
Though China banned cryptocurrency trading and initial coin offering in 2017, the blockchain industry showed no signs of a slowdown, rather it expanded significantly.
The Chinese government is also streamlining the regulations around the decade-old industry as earlier this year, the congress reviewed specialized blockchain development fund that proposed to encourage blockchain innovation, grow a variety of blockchain enterprises, and to cultivate several blockchain “unicorns”.
The country also recognized 224 blockchain projects involving some of the tech giants like Baidu and Walmart. The central bank of the country also pushing the launch of digital yuan and is also engaged in a few other blockchain-based projects.