Despite the impact of the COVID-19 global pandemic across most of the industries, the blockchain sector in China is booming. According to decentralized data provider LongHash, more than 10,000 new blockchain companies have registered in China so far this year.
Only seven months into the year and the fresh registration figure is already third-highest, slightly behind the previous two years.
China witnessed the setting up of the maximum number of blockchain companies in 2018 as the number hit in 2019, but at the present growth rate, the number of newly registered companies will surpass that, the crypto data platform pointed out.
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 southern province of the Guangdong, following the southwestern Yunnan Province.
However, it is interesting to note that most of these blockchain startups had been set up with little 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, have 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 has expanded significantly.
The Chinese government is also streamlining the regulations around the decade-old industry as earlier this year, the Chinese congress reviewed the specialized blockchain development fund that proposed to encourage blockchain innovation, to grow a variety of blockchain enterprises, and to cultivate several blockchain ‘unicorns’.
The country also recognized 224 blockchain projects involving tech giants, like Baidu and Walmart. The central bank of the country, also pushing the launch of digital yuan, is engaged in a few other blockchain-based projects.