Blockchain Sector Sees Boom in China Despite Cryptocurrency Ban

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The blockchain sector in China has seen booming growth, despite strenuous efforts by Chinese regulators to suppress the cryptocurrency market since 2017.

China’s blockchain market posted robust growth in 2022, with the Cyberspace Administration of China (CAC) seeing the total number of registered services hit 1,821, according to a report from the South China Morning Post.

CAC’s data further indicates that the rate of certification of new blockchain services saw a marked acceleration towards the end of 2022.

Chinese authorities have rigorously sought to suppress cryptocurrency trading since the end of 2017, when they first launched a ban on initial coin offerings (ICO’s) and domestic exchanges.

Regulators have encouraged the development of blockchain applications by Chinese companies however, with leading tech firms entering the sector including Alipbaba, Ant Group, Tencent, JD.com, Xiaomi, NetEase and Baidu.

Most of the registered service involved either law or finance, as well as Blockchain-as-a-Service (BaaS) applications which make blockchain application such as smart contracts more readily available to customers.

China’s blockchain market is on track to see annual compound growth of 47% from 2020 to 2025 according to figures from market research firm IDC, hitting as much as USD$3.2 billion by the end of the period.