Less Than 10% of Chinese Blockchain Companies Actually Have Blockchain

Henry Chan   Nov 18, 2019 16:00 1 Min Read

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This article is contributed by our content partner, Nexchange NOW.

Here’s something unsurprising, The Block, citing China’s “Focus Report,” says that over 90% of China’s 32,000 blockchain companies don’t have the technology:

On Monday, “Focus Report” released a full episode on the prevalence of fraud in China’s blockchain and cryptocurrency space. Titled “Blockchain is not an ATM Machine,” the episode delves into how companies misuse the concept of blockchain to “further their money-grabbing schemes.”

Data by China’s National Internet Emergency Center (CNCERT) reveal that there are over 755 tokens on the market that are not backed by real initiatives or have hit zero after inception. The center has also identified 102 coins that allegedly swindled consumers with Ponzi schemes. Moreover, by November 15th, the number of legal rulings related to blockchain has reached a record high of 566 and many of them involve digital currencies, data from China’s Supreme People’s Court (SPC) shows.

Focus Report, one of China’s highest-profile news programs, said that “relevant departments need to strengthen their regulations in the space.” As for the public, the show wants them to keep an eye out for frauds.

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