Established in 2012, the Bitcoin Foundation has quite a few titles – It is a “top trade organization”, an “unofficial organisation to represent the interests of Bitcoin”, a Bitcoin “lobbying group” and “one of the world’s leading advocacy groups for the cybercurrency”, to name a few. Although not everyone in the Bitcoin community agrees as to what the Foundation’s role is, there is little doubt that it is one of the most high-profile nonprofit organizations in the space, with some of the most recognizable Bitcoin luminaries serving on the board.

In a move reminiscent of the Bitcoin Foundation’s original establishment, a man named Ryan Xu has called for the formation of a China-focused bitcoin advocacy group.

Originally posted on Yibite.com, the Chinese bitcoin news website on 8th November, Xu’s proposal generated a moderate amount of social media comments in its immediate aftermath. Though judging by people’s response, the interest was not strong, such a proposal nonetheless raises questions as to whether China needs its own bitcoin advocacy group, and whether such an organization would be viable in the current regulatory environment.

In his 930-character long proposal for a ‘Bitcoin Development Foundation’ (BDF), Xu outlines five issues that it seeks to tackle:

1. The China bitcoin Industry is still in an early stage, companies in the space need support;
2. The Chinese bitcoin community lacks solidarity. There needs to be more people who are dedicated to the development of the community;
3. The Chinese bitcoin community has little voice in the mainstream media, which is dominated by negative news and commentary.
4. There was little communication between the Chinese bitcoin community and relevant organizations. Communication with government and businesses needs to be strengthened;
5. The Chinese bitcoin community lacks communication with the rest of the world. It needs to be kept up to date with developments in the international bitcoin community, and learn more from their experience.

Although these general issues are widely acknowledged, there is a lack of consensus as to whether a new Bitcoin Foundation is the answer.

Relationship with Bitcoin Foundation

In an email exchange with Xu on November 26, he introduced himself as “Chief Strategy Officer of Bitcoin Group”, an Australia-based bitcoin company. Yet he is probably better known in the Chinese Bitcoin community for his alias “火星人” (Martian), and for being a prolific bitcoin commentator who frequently publishes opinion pieces on the Chinese language bitcoin media.

It’s clear in my exchange with Xu that he drew inspiration for the advocacy group from the Bitcoin Foundation. When asked his motivation (as a Chinese living in Australia) for being so concerned with the well-being of the Chinese Bitcoin community, Xu said many bitcoin enterprises are borderless, citing the example of international Bitcoin Foundation, which has established multiple chapters across the globe. His advocacy group will even have a similar membership fee structure. Like the Foundation, Xu’s BDF would charge individuals a small amount for basic membership ($25 per year), whereas institutions would pay much more (up to $100,000 for premium membership).

The Bitcoin Foundation has been nagged by criticisms, with the recent resignation of ‘bitcoin guru’ Andreas Antonopoulos from the board, protesting the organization’s purported “lack of transparency”. When asked what measures the BDF would have in place to avoid similar issues, Xu replied that it wouldn’t have a board director or chairman. Funds will be raised for specific projects. All members will be able to access the accounting information.

He also added that the BDF would refrain from involvement in “commercial activities”, though he didn’t elaborate on what constitutes such activity.

When commenting on the potential relationship with the Bitcoin Foundation, Ryan said that it wouldn’t be one of competition in the near future.

Response

Some people have already expressed interest, Xu added, and signed up as volunteers. Among them five are Chinese Bitcoin entrepreneurs. The Foundation also started its first project: a survey to study the demographics of the Chinese bitcoin-owning population and their attitudes towards the digital currency.

He anticipated difficulty, however, especially in light of the draconian process that registering a NGO typically involves. A 2013 Reuters piece writes that “Non-profit registration in China is strict and difficult. Only when a non-profit gets a government department to supervise its operation is it eligible to submit an application of registration to the civil affairs office. The complex procedure leaves many grassroots NGOs unregistered, which means they cannot raise funds, enjoy tax preferential policies, and they face potential legal risks.” Either way, whether a Bitcoin NGO can be legally registered is going to be a test of the government’s attitude.

Ryan declined to disclose the specific amount of funds that have been raised, merely saying that “it just started.”

 

Source: Forbes – Proposal To Form China’s First Bitcoin Advocacy Group To Test Government Attitude

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