Although there are over 79,000 blockchain companies registered throughout China, only 26,089 are considered as operating. Likewise, some companies could be shell corporations established in China but managed out of other jurisdictions.
The data also shows that 57,257 blockchain companies have had their licences revoked or their legal status changed in China since 2009 – a stark warning of the dangers of starting up a business in a bleeding-edge industry.
This figure dropped during 2019 to just 14,000 start-ups, coinciding with the tail end of a prolonged bear market.
Nevertheless, overall the data shows that despite some uncertainty in the Chinese blockchain industry, appetite for the technology is still strong, with the number of new blockchain start-ups per month still matching 2017 levels.
Guangdong province, home to major tech hub Shenzhen on the border with Hong Kong, has attracted the most blockchain companies, with a huge 22,636 firms choosing the province as their base of operations – more than double that of any other province.
‘Blockchain, not Bitcoin’
In October 2019, Binance said it would be “scaling up” its capacity for Chinese customers following Xi Jinping’s statements, which prompted individual web searches for ‘blockchain’ in China to spike to over 9 million.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.