Bitcoin, ICO, and blockchain have become over the last couple of years popular word in China. The government is still focusing on regulations in the FinTech sector. As China is one of the most dynamic countries in terms of digitalization and trading, it is interesting to follow the development and the future of this market. What are the results of the previous measures aiming to decrease ICO intake in China? How is blockchain technology taking ground in China?
This article is an update to our previous article on ICO in China.
Bitcoins still attract Chinese people
Recently, the Central Bank officers have publicly stated that at present, the rectification and suppression of the Bitcoin trading platform and the initial coin offering platform (ico) in China have basically been completed.
The China Banking Insurance Commission recently released news paying close attention to the interest rates of individual lending to combat illegal fund-raising. China continues to guard against internet financial risks. In fact, after the publication of the “Prevention of the financial risk of token issuing” on September 4, 2017, by banking institutions and government agencies, all digital currency exchanges in the country suspended their trading before October last year. All ICO platforms and Bitcoin transactions have safely exited the Chinese market.
This announcement issued this time is a reminder for speculators who believe that they are doing an investment. China firmly delimits the virtual currency, considering the trade as risky. Unlike the stock market, virtual currency is not protected by law.
Although China banned bitcoin transactions, bitcoin transactions are global and outside of China they are still hot. It is worth noting that after it was banned in China, the price of Bitcoin has not been negatively affected. In addition, there has been a new round of spectacular increase.
Bitcoin prices have continued to soar, with the highest rate exceeding US$20,000, which has attracted a large number of investors. At the same time, illegal financial activities involving Bitcoin and various types of virtual currencies are spreading.
Blockchain technology is taking off China’s development
Draw the line between token and blockchain
Although people have divided opinions about the token market, on the side of Blockchain, businesses are running very well. BATJ (Baidu, Alibaba, Tencent, and Jingdong), the four most powerful companies in China, has been clear to not touch ICO. They are more focused on applying blockchain technology to their businesses. Because it is also strengthening the R&D investment.
“identifying the blockchain as ICO is the 2017 biggest fallacy,” said Ant Financial Services Group (a company backed by Alibaba) related person. The blockchain is the underlying technology of Bitcoin. Bitcoin is the first application of blockchain technology.
Blockchain projects are accumulating in China
A recent article in the People’s Daily, it quoted that mainstream blockchain technology platforms are all from abroad. Domestic blockchain technology service providers should patiently start from the bottom, make the technology become independent and controllable, and strive to lead the trend of global blockchain technology. In the past year, the government has followed its own roadmap and consciously allowed domestic blockchain projects to start and began to realize the commercialization of the blockchain.
GOGOCHICKEN: when Blockchain controls food safety
Blockchain technology is used in a different ways, and for different industries.
Partnering with Anlink (连陌科技), ZhongAn Technology, a subsidiary of Ant Financial, launched an agriculture project called gogochicken (步步鸡). Featuring blockchain’s immutability and traceability, the company provides the country’s growing middle class who are concerned with food safety a pricey solution.
ZhongAn built a new chicken farm with the assistance of local authorities. Inside, each chicken will have a wearable attached to its legs, which tracks its daily activities. All the information, as well as shipping records, will be uploaded to the cloud and secured by blockchain. When consumers receive their chickens, they can scan a QR code to see the birth and slaughter date and how many steps the chicken walked.
While in local supermarkets, regular chickens are usually sold for around RMB 60, frozen Gogochickens are sold for RMB 238 ($37) each, and chilled cost RMB 268.
Do you have a project to start in China?
At this stage of development, China has a lot of booming industries. This is a promising and huge market with its own culture and way to function. GMA can help you to break through the Chinese market. Here are some advice for your business in China.
Learn about Chinese people’s concerns
Why a project such as Gogochicken has gained a lot of success? Chinese people are very concerned about food safety in China. Even if in supermarkets, there are indications on each package, they don’t rely a lot on what is written on. The growing middle class in China is coming along with the increase of the average revenue in China. Consumers began to search for quality and healthy products.
Digitalization of the society
You need to be present on the internet. Chinese consumers are very active to search for information. Specialists or not, they have their specific platform and methods to do research and to make their decision. There are people saying that “when you gain the Chinese market, you already gain the world”. China’s society is the most connected in the world.
The Internet makes it easier to do business in China, offering new tools and a new way to reach your client. But it can also bring a negative impact if you don’t manage your presence online. Information is spreading at a quick pace over the network. For more information about the growth of P2P (Peer-to-peer) in China, you can take a look at our previous article here.
GMA is specialized in digital marketing in China. We follow the latest marketing and technology trend to provide our clients with the most effective way to develop their business in China. We are also a finance & forex marketing agency in China.
Feel free to contact us for further discussions.
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