Chinese authorities are supporting the use of blockchain technology so exchange houses and BTC reacts in a positive way.
One of the largest exchange cryptocurrency in the world, Binance, plans to return to China with an office to be open in Beijing. This information was known through some sources which do not reveal their name.
This crypto exchange is based in Malta, a country that has opened its doors to this kind of technology, in order to attract investors. This new office will join Binance’s current mainland China office in Shanghai.
However, until the moment it is not clear what activity the office will do or when it will open. But there is something clear. China is trying to adopt blockchain technology. Recently, its President, Xi Jinping announced his intentions to take advantage of Distributed Ledger Technology (DLT) and asked citizens to invest in it.
After that, Bitcoin (BTC) reported daily gains of upwards of 36% or 42% according to some exchanges, which could be a reaction to the positive comment of Xi Jinping regarding blockchain technology, as well as the news about Binance and cryptocurrencies operations in China.
Binance’s CEO, Changpeng Zhao, said on Twitter that Binance currently sees a few million dollars a day worth of volume from Chinese users. This happens especially via the peer-to-peer functionality that became available in China last October. But the truth is that Chinese users are employing this technology in their operations or payments.
“I don’t have anything that’s not public. All of my readings are from public sources”, Zhao said on a video posted in his Twitter account.
Binance Operates Outside China
The company left China in September 2017. This was due to the ban policy the Government imposed over cryptocurrencies in that region. But now, Binance is looking to open a new office in Beijing to accompany one office operating in Shanghai.
Sources at Binance confirmed that some of its employees are operating in the capital city of China, although it is not clear when Binance could open a physical office again in that territory.
As probably part of these projects, last September, local media reported Binance was making its first major investment in China since leaving the country. In this sense, the company “took part” in a $200 million round of funding for Chinese crypto and blockchain publication Mars finance.
The Country Would Adopt Blockchain
The exchange reported, some time ago, China was planning to launch a digital fiat currency. Also, Binance’s CEO, Changpeng Zhao wrote on Twitter that he believes the Chinese central bank, the People’s Bank of China (PBoC), is having a positive impact on the crypto industry with behaviors like these ones.
China’s new ambitions are evident since last October. Recently, authorities of the Asian country informed that it will certify 11 companies related to digital payments through blockchain technology.
This is in order to support these companies but also to verify they are meeting the rules that the Government imposes as a way to protect users and monitor the development of the network. Users wait for more announcements to know-how will operate the Chinese Government.
By María Rodríguez