China’s Cyberspace Authorities have recently released a new list of firms that can provide blockchain services within its jurisdiction. This is the second batch of players within the space to get approval from Chinese regulators.
The new market entrants are over 300 and operate in different backgrounds which include; supply chain, healthcare, law, e-commerce, education tourism, and government agencies as well.
The Blockchain Opportunity in China’s Existing Ecosystems
As expected, Tech corporations featured in the list with AliCloud and HiCloud that belong to Alibaba and Huawei respectively. The two are both mandated with blockchain development and its use for the tech giants.
The Financial Services and Airline industries were also well represented by the Commercial Bank of China and the old China Southern Airlines. This shows that traditionalists have also invested in the latest FinTech research that happens to be majorly fueled by Blockchain technology.
Governmental agencies like China’s State of Administration of Foreign Exchange and Hangzhou Internet Notary Office are also among the main blockchain developing entities in China. The former has built a blockchain-oriented business platform for cross-border transactions.
Censorship in Form of ‘Regulation’
China’s regulatory body for blockchain tech was introduced barely a year ago. The ‘Regulation for Managing Blockchain Information Services’ began its mandate in Q4 of 2018 and has since been a target of criticism by cryptocurrency and blockchain advocates.
According to some sentiments, the approach taken is more of a censored one as opposed to regulatory. The Authorities require that blockchain operators provide their clients’ personal information for oversight by the government. In addition, the blockchain service providers are not to engage with any data that appears or proves to put China’s national security at risk. While this may be efficient, users might lose value for what they had signed up for given the fundamentals of a decentralized ecosystem.