More than 35,000 blockchain companies are operating in mainland Cathay —  simply it's believed that many of them do not even use blockchain engineering.

In the first quarter of 2022, equally COVID-nineteen shut downward factories, offices and cities across the  world, ii,383 make-new "blockchain" companies sprung up in Cathay.

This brings the total to 35,010 companies every bit of April one — over 20,000 in Guangdong province alone — according to Tianyancha, a business information visitor.
But in mid-February data house LongHash estimated that approximately 70% of the total number of blockchain firms registered in the Asian country at that time had lost their legal status or had their licenses revoked.

'Blockchain' companies in name simply

Blockchain is hot holding in Red china, peculiarly after President Eleven Jinping announced in October last year the country will become a global blockchain power leader. This may assistance explain why  larger businesses characterization themselves as "blockchain" companies when in fact they have little if anything to exercise with the core engineering science.

This push, combined with how complicated it is to bring a legitimate blockchain company up to authorities standards, might go a long manner to explaining the miracle.

Many smaller Chinese "blockchain" companies and startups have been constitute to exist shell corporations. A marketing tactic in and of itself, these "blockchain" companies can and so exist sold or captivated by a larger, mayhap more legitimate firms.

At a December 2022 Annual Meeting on Blockchain and Digital Avails in Beijing, Bai Liang, Vice Director of Chinese Plant of Digital Asset, admitted the number of these companies was astonishingly high:

"The reality is that… 96% of the more than thirty,000 blockchain companies in China are non actually operating [using blockchain as their cadre technology]."

China's Office of Central Cyberspace Affairs Commission (CAC) has reported only 506 companies out of the 35,000+ fifty-fifty have a blockchain service filing number.