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ICO and Trading Bans in China Give Way to Blockchain Support and Patents

  • 28 February 2018
  • Cas Proffitt

Bank of China creates new blockchain patent and The Peoples Daily posts a full spread supporting blockchain in months after crackdown on ICOs and crypto-investing.

Over the past six months, the crypto community in China has taken major hits after the Chinese government formally banned initial coin offering (ICO) investments and shut down several of its biggest crypto exchanges.  They stepped up these regulations to target overseas websites that provide these services to citizens and added an announcement that “even offshore cryptocurrency trading platforms carry the same systemic risks” in late January 2018.

After these moves, many people in the community thought China to be dead in the water in terms of blockchain and cryptocurrency, opting to stray away from the country in favor of more favorable and less strict locations such as Japan, Canada, Germany, and Holland (which literally has a “Bitcoin City.”)

However, blockchain appears to still be alive and well in China.

The People’s Daily Full Spread on Blockchain

The official newspaper of the Chinese Communist Party, The People’s Daily, published a full page spread on February 26, 2018, explaining that China is not only pro-blockchain, but that it should create an invincible position in the future international blockchain battle.

As mentioned by CoinDesk, the report provides a very clear stance on the future of blockchain as well as its regulation in the following passage from the Chinese article:

Blockchain technology is still very immature. We must be cautious about speculation on this concept and separate technology-based innovations from those with a fund-raising purpose. In order to better promote and utilize the blockchain technology, the government should implement strengthened policies and regulations.

Bank of China’s New Blockchain Patent

The Chinese State Intellectual Property Office (SIPO) released news on February 23 of a patent filed for in September 2017 for a blockchain scaling technology system from the state-run Bank of China.

The basis of the blockchain patent is a space-saving data compression system that squeezes multiple transaction blocks into a new data block, which will keep the data traceable and immutable while saving space and also adding a identification labels to the blockchain including compression events and the new data blocks.

With such a fervent pace on the blockchain scene, we can expect to see more news from China in the near future.

About Cas Proffitt

Cas is a B2B Content Marketer and Brand Consultant who specializes in disruptive technology. She covers topics like artificial intelligence, augmented and virtual reality, blockchain, and big data, to name a few. Cas is also co-owner of an esports organization and spends much of her time teaching gamers how to make a living doing what they love while bringing positivity to the gaming community.