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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.”
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.”