More than 32,000 suspected blockchain entities are operating in China, but only fewer than 10 percent of these currently own software used for blockchain, Focus Report, one of China's highest-profile news programs, revealed.
On Monday, Focus Report disclosed a full episode on the incidence of fraud in China's blockchain and cryptocurrency room. The episode called "Blockchain is not an ATM machine" discusses how businesses exploit the blockchain theory to "further their money-grabbing schemes."
Statistics from the National Internet Emergency Center show that there are more than 755 tokens on the market that are not sponsored by actual programs or reached zero after the launch. 102 coins have also been listed by the center who allegedly swindled customers with Ponzi schemes.
In addition, by the middle of this month, the volume of blockchain-related legal rulings has hit a record high of 566 and many of them contain digital currencies, information from the Supreme People's Court of China (SPC) showed.
Chinese leader Xi Jinping indicated last month that the country would contribute to promoting and prioritizing the growth of blockchain technology as a key platform for technological breakthroughs.
Although Xi praised blockchain technology, however, China's official cryptocurrency position remains uncertain. Nonetheless, there has been growing concern around cryptocurrency Initial Coin Offerings (ICO) since the Chinese government cracked down in September 2017 on illicit token issuance and financial fraud linked to cryptocurrencies.
"We should actively advocate for the implementation of blockchain technology in commercial finance, public services, and other areas, but in the name of blockchain we should not encourage corruption or the encircling of assets," Focus Report said.
A couple of weeks ago, several leaders of the cryptocurrency group thanked the Chinese president for promoting blockchain technology.
The president's pledge to promote the production of cryptocurrency in China has unintentionally sent the value of Bitcoin skyrocketing in just a few hours by a huge 42-fold. It also prompted shares of Chinese blockchain A-share firms to top out the following Monday at their 10 percent cap.
Xi Jinping has been very vocal in his attempts to remind the world that he is not a big fan of cryptocurrency after his approval of blockchain, nor is he the "father" of digital currency, as what many advocates of the crypto have labeled him to be.
It's the thorough and unprecedented monitoring qualities of cryptocurrency and blockchain technology that the Chinese government is so interested in for its commercial and financial applications. The narrative is clear: Blockchain -- not Bitcoin.
