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China, which was a country criticized by the international community for banning the trade in cryptocurrencies, is now one of the leaders in the development of cryptocurrency technology. Since China has aimed to embrace modern technology to improve the lives of its citizens, how to make mobile payment methods, fast railways and automatic guided vehicles available. So, because of the potential of blockchain technology, the Chinese government did not take long to start working on technology and adopt it nationwide. The evidence even suggests that China is competing to become a nation powered by blockchain technology.
The last few years have shown numerous blockchain-related regulations and policies that have been introduced throughout China. The development of Blockchain has been incorporated into the country's national plan and even support activities such as funds have been allocated. In general, blockchain technology has received a lot of attention from China.
As reported by a local Chinese financial publication Securities Daily on December 7, three Chinese cities of Beijing, Shanghai and Guangzhou, collectively known as BeiShanGuang, have become the hottest areas for relevant legislation and blockchain policies.
Securities Daily carried out an analysis of all the blockchain-related policies implemented in China in past years and presented the results that 32 blockchain-related policies were introduced in the country. Eleven of these projects were concentrated in the three cities of Beijing, Guangzhou and Shanghai. The Chinese newspaper of the titles presented a publication that said:
Blockchain technology [is aimed] serving the real economy, focusing on the balance between innovation, regulation and security, and clarifying the bottom line of financial stability and information security.
However, when it comes to cryptocurrency and blockchain, China has maintained a divided policy, in which it promotes and incorporates blockchain technology into its systems and, from the other, prohibits cryptocurrencies. Chinese President Xi Jinping has even publicly stated that blockchain technology is a 21st priorityst century.
In November, the Chinese Ministry of Industry and Information Technology (MIIT) published a document whose content required accelerated development of standards for the effective application of blockchain systems in several national industries.
Also last month a new association was established in the Chinese city of Guangzhou, comprising 54 different companies, which was aimed at promoting and developing blockchain technology in China.
China has had a very positive attitude in dealing with Blockchain technology. It is indeed one of the first countries in the world that has mentioned blockchain technology in a state-level policy. During the year 2016, China added Blockchain to the thirteenth five-year plan, which was a project for national development from 2016 to 2020.
That said, the Chinese government allegedly censored some contents related to cryptocurrencies. China is one of the biggest contributors in the blockchain market and hosts a significant number of Bitcoin miners, in 2017 it is estimated that fifty to seventy percent of Bitcoin mining activities took place in China. As of now, due to regulations imposed by the Chinese government, the trade in cryptocurrencies is banned in the country. After the crackdown, which occurred last autumn, on local exchanges and initial coin offerings (ICOs), Chinese citizens may possess cryptocurrency, but exchange with legal tender is illegal.
Several institutions, including the People's Bank of China (PBoC), the Chinese central bank, have issued multiple warnings against cryptocurrencies and even dubbed them "bubbles" in terms of financing and investments. The Beijing Municipal Labor Office has reminded the public that even the offerings of security securities (STO) were considered illegal in the jurisdiction.
Regardless of a number of exciting promotions for the blockchain business, many companies are silencing when it comes to being involved in blockchain-related products due to uncertain policies. Therefore, economic operators must be aware that certain blockchain products are completely in line with government rules or not, even if cryptocurrencies are not involved.
