The crypto ban in China prohibits crypto transactions in the most populous country on earth. Due to the additional ban on Bitcoin mining in China, the crypto industry has moved out of the country, but it has fully recovered in terms of hash power. However, the country’s current action now shows that the crypto ban does not have to affect the further development of blockchain technology per se. China has allowed certain cities and companies to test blockchain applications, demonstrating Beijing’s commitment to the emerging technology.

China’s Central Cyberspace Administration and other officials urged regulators to fully exploit the role of blockchain in areas such as data sharing or enterprise operations, as well as lowering operating costs, in a notice issued on 30 January.

Now, pilot projects will be conducted in Shanghai, Beijing and Guangzhou to determine the potential. Chinese authorities have selected a total of 164 organisations in the country to test blockchain technologies. These organisations include universities, banks and hospitals, among others. However, local government agencies, energy providers and automotive companies are also in the mix.