Blockchain Funding Center Scrapped Over China Regulation Concerns

A Chinese investment association has scrapped a previously reported plan to launch a funding center to boost blockchain development in the country.

AccessTimeIconMar 28, 2018 at 9:00 a.m. UTC
Updated Sep 13, 2021 at 7:45 a.m. UTC
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

The Investment Association of China (IAC) has scrapped a previously reported plan to launch a funding center to boost blockchain development in the country.

In an announcement Tuesday, the IAC, a government-led social organization that facilitates major domestic investment projects, explained that the administrative structure of the new initiative may be in conflict with code currently enforced by China's Ministry of Civil Affairs.

The statement pointed to the issue that a social organization can not establish further subsidiaries under its existing sub-committee, according to the ministry's rules. However, the IAC has yet to clarify whether the initiative might still be implemented via an alternative structure.

The IAC first announced the initiative – dubbed the Global Blockchain Investment and Development Center – in mid-March, with plans for it to be overseen by the organization's Foreign Investment Committee.

According to CoinDesk's report at the time, the new center had been intended to provide the necessary funding for blockchain projects seen to have high potential in China after the IAC observed the growing popularity of the technology in the country. Other areas of focus were said to be providing consulting services to institutions interested in investing in blockchain initiatives.

Founded in 2001, the IAC reports directly to China's National Development and Reform Commission, a major government agency in charge of economic and investment reform in the country.

Red traffic light image via Shutterstock

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.


Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.