China and cryptocurrency

China and cryptocurrency

If you are interested in cryptocurrency situation in China, then read this article! As we know, the ban on cryptocurrencies from Chinese Government had a negative effect on the cryptocurrency industry. But, there are many of reasons to stay optimistic! Let’s discover why.

I would say we can expect a number of blockchain-based breakthroughs from China in the nearest future and governmental support is likely to boost the country’s R&D.

Let’s remember some major positive facts about cryptocurrency progress and the whole situation in China market.

2016 - 13th Five-Year Plan

In 2016, blockchain technology development was added into the 13th Five-Year Plan — the plan for national development over 2016–2020 — thus making China one of the first states in the world to accept the technology in its official policy.

2019

January 2019: China has released its latest government-sponsored rankings of major cryptocurrencies, placing Bitcoin (BTC) in 15th, while EOS was 1st and Ethereum was 2nd.

China and its advantages in Mining

Did you know that China is known for its plants producing video cards and ASIC miners? So its bid advantage is that Chinese miners are able to buy the equipment at a much lower cost.

China can already boast a remarkably low price for electricity; add to it the decision of the Chinese government to encourage the industrial production of cryptocurrency by offering additional discounts on electricity to crypto farm owners, and you can see why China is one of the world’s largest mining centers.

Cryptocurrency and technology

- Alibaba

Chinese e-commerce titan Alibaba holds the most Blockchain patents globally: an estimated amount of 49 licenses which are mostly app-oriented and have been utilized in such areas as healthcare, public welfare and supply chains.

- ZhongAn Tech

Another of Jack Ma’s creations, ZhongAn Tech, wants to use blockchain technology to cut risk and costs in healthcare insurance. It is reported that ZhongAn Tech is currently working with Shanghai’s insurance regulatory arm on building a blockchain reinsurance platform;

- Huobi

Third-largest cryptocurrency exchange, has launched a $93 mln China-South Korea investment fund for blockchain companies in partnership with Chinese investment firm NewMargin Capital and South Korean securities firm Kiwoom Securities Co., Ltd.;

- Baidu

Chinese search giant is planning to launch a new blockchain-based game - Du Yuzhou. This is going to be Baidu’s second foray into blockchain-based gaming apps: in February, Baidu launched a blockchain-based game “Leci Gou”, where players are supposed to take care of dogs. In addition, Baidu has recently announced another blockchain-based product: a “super chain” protocol;

Other advances

In late September, Ethereum Hotel, China’s first hotel that accepts Ethereum (ETH) as a payment method, reportedly opened their business in National Scenic Area of Four Girls Mountain (Sichuan Province).

So, as you can see there are plenty reasons to be optimistic! If you want to set a crypto company in China just contact my team and we will be glad to help you to choose the best solution for setting your company. The journey to conquer this market is not an easy one, it requires a lot of time, effort and hard work, our team will be glad to help you cover all obstacles you can face on the road to success.