89% OF CHINESE BLOCKCHAIN FIRMS HAVE TRIED TO ISSUE CRYPTO: REPORT

Last updated: June 19, 2025, 19:31 | Written by: Erik Voorhees

The landscape of blockchain technology in China is complex, a mixture of innovation, ambition, and regulatory scrutiny. 89% of Chinese Blockchain Firms Have Tried to Issue Crypto: ReportA recent report has brought to light a fascinating, and perhaps concerning, trend: a staggering 89% of Chinese blockchain firms have reportedly attempted to launch their own cryptocurrency.This revelation, stemming from insights shared by a senior executive at a local blockchain association, paints a picture of an industry grappling with the allure of digital assets, even amidst stringent government restrictions.The report, co-authored by five financial and technology authorities, also unveils that approximately 25,000 companies out of 28,000 in the country, have tried issuing their own tokens over the past few years. 89% of Chinese Blockchain Firms Have Tried to Issue Crypto. 89% of China s blockchain firms have allegedly tried to create their own cryptocurrency, according to a senior executive at a localThis widespread experimentation raises questions about the motivations behind these ventures, the potential risks involved, and the implications for the future of blockchain technology within China and beyond.

This article dives deep into the findings of this eye-opening report, exploring the driving forces behind this trend, the geographical concentration of these firms, the regulatory environment they operate in, and the potential impact on the global cryptocurrency market. 89% of China s blockchain firms have allegedly tried to create their own cryptocurrency, according to a senior exec at a local blockchain association. According to the state-run CCTV on Nov. 21We'll also examine the perspectives of industry experts and delve into the future outlook for blockchain and crypto in China, especially given the fluctuating stance of the Chinese government toward digital assets.

The Allure of Crypto: Why the Rush to Issue Tokens?

Why have so many Chinese blockchain firms felt compelled to create their own cryptocurrencies?Several factors likely contribute to this phenomenon:

Fundraising Opportunities: Issuing a token can be a rapid way to raise capital, bypassing traditional investment routes.This is especially attractive for startups seeking funding in a challenging regulatory environment.
Building Ecosystems: A custom token can incentivize users, reward participation, and create a closed-loop economy within a blockchain platform or application.Think of it as creating your own loyalty points system, but on a much larger, and more complex, scale.
Technological Experimentation: The process of creating and launching a cryptocurrency provides valuable hands-on experience with blockchain technology, smart contracts, and decentralized finance (DeFi) principles.
Perceived Opportunity: In the early days of crypto, the promise of quick riches and transformative technology fueled a gold rush mentality.While that fervor has cooled, the belief in the potential of crypto continues to drive innovation, and speculative interest.

The Role of Speculation and Market Hype

The volatile nature of the cryptocurrency market can entice companies to create tokens, hoping for a surge in value. 89% aller chinesischen Blockchain-Unternehmen sollen versucht haben, eine eigene Kryptow hrung auf den Markt zu bringen, wie der Leiter eines chinesischen Blockchain-Verbandes angibt. Yedong Zhu, der Pr sident des Pekinger Verbandes f r Blockchain-Anwendungen (BBAA), legte am 21.While some projects might have genuine utility, others might simply be riding the wave of market hype.This speculative element introduces significant risk for both the companies issuing the tokens and the investors purchasing them. We would like to show you a description here but the site won t allow us.Consider the many meme coins that have sprung up, only to fade into obscurity – a similar dynamic can play out with projects launched by blockchain firms.

Concentration in Guangdong and Shenzhen

The report highlights a significant geographical concentration of blockchain firms in the Guangdong and Shenzhen provinces. 25,000 blockchain firms in China about 89% tried to issue their own tokens, while only 4,000 are fully focused on blockchain apps. 25,000 Blockchain Firms in China Tried to IssueThese regions have historically been hubs of technological innovation and economic growth in China. The report claimed that only 4,000 such companies were focusing solely on the blockchain. Meanwhile, 25,000 firms were trying to issue their own digital currency. The report showed that blockchain companies were concentrated in the Guangdong and Shenzhen province. The Guangdong province housed nearly 50 percent of all blockchain companiesSeveral reasons explain this concentration:

Favorable Business Environment: These provinces offer a more conducive environment for technology companies, with supportive government policies and a thriving ecosystem of talent and resources.
Proximity to Hong Kong: Shenzhen's proximity to Hong Kong, a major financial center, provides access to international markets and investment opportunities.
Manufacturing and Supply Chain: Guangdong is a major manufacturing hub, which provides ample opportunities for blockchain applications in supply chain management, logistics, and traceability.

This concentration means that any regulatory changes or policy shifts in these regions can have a disproportionate impact on the entire Chinese blockchain industry.It also means a rich breeding ground for technical advancement and collaboration between firms.

The Regulatory Tightrope: Navigating China's Crypto Bans

China's relationship with cryptocurrencies has been turbulent, characterized by a series of bans and restrictions. A new report from a few Chinese authorities has shown that 25,000 related firms in China have tried to issue their own tokens. It also adds that only 4,000 blockchain firms are strictly aboutIn 2017, the government outlawed Initial Coin Offerings (ICOs), effectively shutting down a significant avenue for fundraising through crypto.This was followed by a crackdown on crypto exchanges, forcing them to cease operations within the country.By 2021, the government intensified its efforts, banning Bitcoin mining and declaring all crypto-related businesses illegal.This clampdown has had a profound impact on the crypto landscape in China, driving many activities underground or overseas.

Given these stringent regulations, the fact that 89% of Chinese blockchain firms have attempted to issue crypto raises questions about how they've navigated these restrictions.Some possible explanations include:

Operating in a Grey Area: Some firms may be operating in a legal grey area, exploiting loopholes or ambiguities in the regulations.
Focus on Utility Tokens: The crackdown primarily targeted cryptocurrencies intended as speculative investments. Si presume che l 89% delle societ cinesi basate sulla blockchain abbia tentato di creare una propria criptovaluta. In un servizio della televisione di Stato cinese, la CCTV, Yedong Zhu, presidente dell Associazione pechinese per le applicazioni tecnologiche della blockchain (BBAA), ha rivelato che la stragrande maggioranza del settore cinese della blockchain incentrato pi sui tokenSome firms may be focusing on issuing utility tokens for specific applications within their platforms, arguing that these tokens are not intended as financial assets.
Offshore Operations: Some firms may be conducting their crypto-related activities outside of China, using offshore entities to circumvent the regulations.

It's crucial to understand that the Chinese government's primary concern is maintaining financial stability and preventing capital flight.The restrictions on crypto are largely aimed at achieving these goals.

The Future of Crypto Regulation in China

The future of crypto regulation in China remains uncertain.While the government has maintained a strict stance, there are signs that it may be exploring ways to harness the potential of blockchain technology while mitigating the risks associated with cryptocurrencies. Al m das observa es de Zhu, a mat ria da CCTV cobriu um novo estudo liderado pelo Banco Popular da China . Com coautoria de cinco autoridades financeiras e de tecnologia locais, o relat rio Bluebook on Blockchain revela que hoje existem 28.000 empresas de blockchain na China.For example, China has been actively developing its own central bank digital currency (CBDC), the e-CNY, which suggests an interest in leveraging digital currency technology within a controlled environment.Whether China will eventually relax its restrictions on other cryptocurrencies remains to be seen.For now, these firms are testing the boundaries of what they can and cannot do.

Impact on the Global Cryptocurrency Market

China's role in the global cryptocurrency market has been significant.Before the crackdown, it was a major hub for Bitcoin mining and trading.The government's actions have had a ripple effect on the global crypto landscape, contributing to price volatility and shifting the geographical distribution of crypto activities. El 89% de las empresas de blockchain de China supuestamente han intentado crear su propia criptomoneda, seg n un ejecutivo senior de una asociaci n local de blockchain. Seg n el CCTV estatal del 21 de noviembre, Yedong Zhu, presidente de la Asociaci n de Aplicaci n de Tecnolog a Blockchain de Beijing (BBAA), revel que la gran mayor aThe fact that many Chinese blockchain firms are experimenting with their own tokens, even amidst restrictions, suggests that China's influence on the crypto market is far from over. Some 25,000 Chinese companies have tried to issue their own tokens over the past few years, a new report authored by five government agencies claims.Even with the current restrictions, China's tech prowess can still influence the global crypto space.

Here's how this activity could potentially influence the market:

Technological Innovation: Chinese blockchain firms are known for their innovation and technological prowess. China s anti-crypto stance is not new. In 2025, the government banned initial coin offerings (ICOs) and ordered the closure of crypto exchanges. By 2025, it extended the crackdown to prohibit Bitcoin mining and declare all crypto-related businesses illegal.Their experiments with crypto tokens could lead to breakthroughs in blockchain technology and decentralized applications.
Market Competition: The emergence of new tokens from Chinese firms could increase competition in the crypto market, potentially driving down fees and improving the user experience.
Regulatory Uncertainty: The ongoing regulatory uncertainty in China could create volatility in the crypto market, as investors react to policy changes and government pronouncements.

Alternatives to Issuing Crypto Tokens

Given the regulatory challenges and potential risks associated with issuing their own cryptocurrencies, what other options are available to Chinese blockchain firms? Approximately 70 percent of blockchain firms in China some 25,000 might have tried to create and issue their own tokens, while only 4,000 are fully focused on blockchain applications, Yedong Zhu, president of the government-backed nonprofit Beijing Blockchain Association, said in an interview with Chinese state media CCTV at the reportThere are several alternative strategies they can pursue:

Focus on Blockchain Applications: Instead of issuing tokens, firms can focus on developing and deploying blockchain-based solutions for various industries, such as supply chain management, healthcare, and finance.This approach allows them to leverage the benefits of blockchain technology without running afoul of the crypto regulations.
Build Partnerships with Existing Crypto Projects: Firms can collaborate with established crypto projects, integrating their technologies and services into existing ecosystems.This can provide access to a wider user base and avoid the challenges of launching a new token from scratch.
Explore Central Bank Digital Currencies (CBDCs): With China actively developing its own CBDC, firms can explore opportunities to integrate their services with the e-CNY. The report revealed that there were nearly 28,000 blockchain firms in the country. The report claimed that only 4,000 such companies were focusing solely on the blockchain. Meanwhile, 25,000 firms were trying to issue their own digital currency. The report showed that blockchain companies were concentrated in the Guangdong and Shenzhen province.This could involve developing applications that facilitate the use of the CBDC or providing infrastructure for its distribution and management.
Focus on Permissioned Blockchains: These are private blockchains that provide more control over who can participate and what transactions are validated.This allows businesses to use blockchain technology with far less regulatory uncertainty.

Each of these alternatives offers a pathway for Chinese blockchain firms to thrive within the existing regulatory framework, while still capitalizing on the potential of blockchain technology.

The Bluebook on Blockchain: A Deep Dive

The report shedding light on the 89% figure, officially titled the ""Bluebook on Blockchain,"" is a critical document co-authored by five local financial and technology authorities.These include the Chinese Academy of Social Sciences, the Payment and Clearing Association of China, and the Beijing Blockchain Technology Application Association (BBAA).The involvement of these entities lends significant weight to the report's findings.

The Bluebook provides a comprehensive overview of the blockchain landscape in China, covering topics such as:

The size and composition of the blockchain industry.
The key applications of blockchain technology in various sectors.
The regulatory environment surrounding blockchain and crypto.
The challenges and opportunities facing the industry.

Yedong Zhu, president of the BBAA, played a pivotal role in highlighting the report's findings, emphasizing the fact that a large majority of Chinese blockchain firms have experimented with issuing crypto tokens. The report also pointed to the growing interest in artificial intelligence, which has contributed to the decline in blockchain and crypto firms. However, KPMG suggested that recent pro-crypto developments, such as the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States, could help revive the sector in 2025.This observation underscores the strong interest in digital assets within the Chinese blockchain community, even amidst the regulatory restrictions. Top cryptocurrency prices and charts, listed by market capitalization. Free access to current and historic data for Bitcoin and thousands of altcoins.The ""Bluebook on Blockchain"" is vital as it shows the tension between the potential of the technology and the strict regulatory requirements of the country.

Expert Perspectives on the Chinese Blockchain Landscape

To gain a deeper understanding of the Chinese blockchain landscape, it's essential to consider the perspectives of industry experts. Com coautoria de cinco autoridades financeiras e de tecnologia locais, o relat rio Bluebook on Blockchain revela que hoje existem 28.000 empresas de blockchain na China. Os autores do bluebook incluem a Academia Chinesa de Ci ncias Sociais, a Associa o de Pagamento e Compensa o da China, a Associa o de Aplica o deSome common themes emerge from their analysis:

China's focus on blockchain technology, not crypto: Experts generally agree that China's primary interest lies in leveraging blockchain technology for its potential benefits in areas such as supply chain management, digital identity, and government services.The government is less interested in cryptocurrencies as speculative assets.
The potential for a resurgence: Despite the restrictions, some experts believe that the Chinese crypto market could eventually rebound, particularly if the government adopts a more nuanced approach to regulation.The approval of spot Bitcoin ETFs in the U.S., for instance, could encourage a re-evaluation of policies.
The importance of compliance: Experts emphasize the need for blockchain firms to comply with all applicable regulations, even if they operate in a legal grey area.Non-compliance can lead to severe penalties, including fines, legal action, and even the closure of businesses.

By considering these expert perspectives, we can gain a more nuanced understanding of the complex interplay between technology, regulation, and market forces that shapes the Chinese blockchain landscape.

Actionable Advice for Blockchain Firms in China

Given the challenges and opportunities present in the Chinese blockchain market, what actionable steps can blockchain firms take to succeed?Here's some practical advice:

Focus on real-world applications: Develop blockchain solutions that address specific problems and create tangible value for businesses and consumers.Avoid focusing solely on speculative crypto projects.
Prioritize compliance: Stay up-to-date on the latest regulations and ensure that all activities comply with the law.Seek legal advice if necessary.
Build strong partnerships: Collaborate with other blockchain firms, technology providers, and industry partners to expand reach and access new markets.
Invest in research and development: Stay ahead of the curve by investing in research and development, exploring new technologies, and developing innovative solutions.
Cultivate talent: Attract and retain skilled blockchain developers, engineers, and business professionals.

By following these steps, blockchain firms can navigate the complexities of the Chinese market and position themselves for long-term success.

The Future Outlook for Blockchain and Crypto in China

Predicting the future is always a challenge, but some educated guesses can be made about the Chinese blockchain landscape:

Increased focus on CBDCs: The Chinese government will likely continue to prioritize the development and deployment of the e-CNY, seeking to establish it as a leading digital currency.
Greater regulatory clarity: The government may eventually provide greater clarity on the regulatory framework for blockchain and crypto, potentially easing restrictions on certain activities.
Continued innovation: Chinese blockchain firms will continue to innovate and develop new solutions, leveraging blockchain technology for a wide range of applications.
Greater international collaboration: Chinese blockchain firms may increasingly seek to collaborate with international partners, expanding their reach and accessing new markets.

The future of blockchain and crypto in China will depend on a complex interplay of factors, including government policies, technological developments, and market trends.However, the underlying potential of blockchain technology remains undeniable, and China is likely to play a significant role in shaping its future.

Frequently Asked Questions (FAQ)

Why is China so strict on crypto?

China's strict stance on crypto stems from concerns about financial stability, capital flight, and the potential for illicit activities such as money laundering and fraud.The government aims to maintain control over its financial system and prevent disruptive technologies from undermining its authority.

Will China ever allow Bitcoin again?

It's unlikely that China will fully reverse its ban on Bitcoin.The government's concerns about financial stability and control are unlikely to disappear.However, it's possible that China could adopt a more nuanced approach to crypto in the future, potentially allowing certain types of crypto activities under strict regulatory oversight.

How can Chinese blockchain firms survive under these restrictions?

Chinese blockchain firms can survive by focusing on developing blockchain applications that do not involve cryptocurrencies, building partnerships with existing crypto projects, exploring central bank digital currencies, and complying with all applicable regulations.

What is the impact of China's crypto ban on the rest of the world?

China's crypto ban has had a significant impact on the global crypto market, contributing to price volatility and shifting the geographical distribution of crypto activities.It has also led to greater regulatory scrutiny of crypto in other countries.

Conclusion: A Landscape of Opportunity and Constraint

The finding that 89% of Chinese blockchain firms have tried to issue crypto highlights the enduring appeal of digital assets, even in a highly regulated environment.While China's crackdown on crypto has created challenges for the industry, it has also spurred innovation and forced firms to explore alternative strategies.As China continues to develop its own CBDC and explore the potential of blockchain technology, the Chinese blockchain landscape will undoubtedly evolve.The key takeaways from the report and this analysis are:

The Chinese blockchain sector has a very high interest in cryptocurrencies, despite governmental bans.
Guangdong and Shenzhen are hotspots for these blockchain firms.
Regulations are subject to change, so monitoring developments is crucial.
Focusing on blockchain applications, partnerships, and compliance are key for survival.

For blockchain firms operating in China, navigating this landscape requires a delicate balance of ambition and pragmatism.By focusing on real-world applications, prioritizing compliance, and building strong partnerships, these firms can position themselves for long-term success.Want to stay updated on the ever-evolving blockchain landscape in China?Subscribe to our newsletter for the latest insights and analysis.