By Recently, there has been a showdown in China as the government seems to be gearing up to embrace cryptocurrency.
The CyberSpace Management Bureau-China’s cyber-related regulatory agency released a list containing 197 approved blockchain registered service providers. This list constitutes Chinese internet giants, including Baidu Blockchain Engine, Alibaba Cloud Blockchain-as-a-Service (BaaS), Tencent Baas (TBaaS), and the BaaS platform owned by e-commerce. Other Chinese financial institutions, such as the China Zheshang Bank and Ping, an Insurance Company, are also included on the list.
Only Two Crypto Projects Approved
Something interesting about the list is that it included two crypto projects (not to be confused with the blockchain firms) contrary to most expectations. The two projects are VeChain (VET), a crypto project leveraging blockchain to provide supply chain management service, and ParcelX (GPX), which, when launched, will give crypto-based parcel delivery service.
China is strict on cryptocurrency use, and with VeChain and ParcelX having being approved is good news to the cryptocurrency community at large. The two crypto projects will henceforth be allowed to operate within China commercially. Following the release of the list, the Bureau also revealed that it would seek out more information regarding cryptocurrency and inform the relevant individuals and institutions to apply for approval.
What does this mean for the Cryptocurrency Community
China is considered to be one of the most significant players in the cryptocurrency space. According to data from China.org.cn, China is home to about 25% of blockchain in the world, making it a fertile ground for the industry. Therefore, the decisions made by the Chinese government regarding cryptocurrency affect the entire industry.
The fact that the two aforementioned crypto projects have been legalized in China with the possibility of more in the future is a clear indication that China has lessened its opinion on blockchain technology.
China’s establishment of more crypto-friendly regulations and support for the development of blockchain technology has seen more blockchain VCs re-enter the market and also increased investment in the cryptocurrency sector.
The approval of VeChain as a legal entity in China has sparked massive support for the crypto project. A fraction of the community is, however, still confused about the approval. Well, VeChain is approved, and as a matter of fact, the company registration number is 66, which is a part of the community pointed out that it’s a lucky number in China.
Commenting on the approval, VeChain’s CEO and co-founder stated:
“Official registration is contributive to the overall development of the blockchain industry. This is the first step towards standardizing blockchain technology development and the regulatory environment in China. This also allows for an increasing number of companies to be able to develop blockchain applications on existing blockchains in accordance with the laws and regulations without being shrouded in stigma.”
Following the approval, VeChain partnered with high profile companies including Amazon, BMW, Fuji MARUMO, and NTT Docomo, among others. This approval, coupled with increased partnerships and collaboration, the company is expected to thrive in the coming days.
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