China has taken a very anti-crypto stance as of late, in fact China has banned all commercial crypto activity in the country. However, it isn’t entirely against blockchain technology and it’s actually encouraging local governments and companies to explore blockchain tech. One region in China is already working on managing its forestry commission using a blockchain, and another – the Wuchang province – is putting its rice on a blockchain in order to prevent fraudulent produce from entering the market. In this light, China has created a blockchain district that it’s using as a pilot zone for blockchain technology firms.
Research is the Order of the Day
Up until now, the majority of firms setting up shop in the Hainan Resort Software Community are research firms, or existing crypto and blockchain firms looking to conduct research. Huobi has set up a research department in the blockchain haven and Baidu is working on its Xuper Chain project from the area. Firms are treading carefully as they are under close watch from the government to ensure no crypto activity is taking place – this is most likely why firms are looking to conduct research in Hainan rather than any development work.
Gunning to Become a Blockchain Hub
While Hainan might never be the leading blockchain region– Malta stole that title back in June when it approved crypto-friendly laws – it’s certainly pushing to become the blockchain equivalent of Silicon Valley. If the pilot scheme goes to plan and it becomes a popular destination with firms looking to operate in the blockchain industry, China will likely release a set of special laws for the region to foster this development. China isn’t a fan of being left out of industry revolutions, so the Hainan region looks set to be pushed along at lightning pace.
Other Countries Joining the Blockchain Race
China and Hainan are going to have to crank up the pace if it wants to become a blockchain Mecca. Vanuatu is already seeking help from the Maltese government to create crypto-friendly regulations and Cyprus is also pushing to join the blockchain revolution. As blockchain technology becomes more prevalent in everyday life, more firms will be looking for a new base to call home for their blockchain developments.
This could be the turning point for China and its love-hate relationship with blockchain and cryptocurrencies. Hopefully, the red dragon will quickly see that most blockchains rely upon tokens to run, and this will help persuade it to once again permit crypto trading.