China to Fund Web3 Development Works, Could Lead to Crypto-Friendly Policies
China has long been known for its hostility towards cryptocurrencies and Bitcoin. In 2021, the country banned the crypto industry and ordered all crypto-related services to stop operating in mainland China. Despite this, China’s government has confirmed that it will continue to support blockchain innovations to modernize traditional digital operations, and recent developments suggest that China may introduce crypto-friendly policies in the future.
Web3 Development White Paper Released
On May 27, 2023, the Beijing Municipal Science & Technology Commission published a white paper titled “Web3 Innovation and Development White Paper (2023)”. The white paper highlighted the numerous advantages and benefits of Web3 innovations for the internet world, and the Chinese government’s plan to fund and support the sector.
Challenges Faced by Web3 Industry
According to the white paper, the development of the Internet 3.0 industry in Beijing is still facing challenges in terms of technology and talent support capabilities, industrial chain integrity, and legal norms. Therefore, there is a need for new policies and changes in old policies to fully realize the benefits of Web3 innovations.
Government Funding
The director of the Zhongguancun Chaoyang Park management committee, Yang Hongfu, revealed that the government will allocate nearly $14 million per year for the next two years to support the Web3 sector. This move is seen as a positive step towards greater adoption and investment in Web3 technologies in China.
Crypto-Friendly Policies?
Many crypto enthusiasts speculate that China’s renewed support for the Web3 sector could lead to the introduction of crypto-friendly policies. The CEO of the popular crypto exchange Binance, Changpeng Zhao (CZ), noted that China’s Web3-focused plan came just after Hong Kong’s new crypto regulation plan.
Hong Kong & Crypto Laws
Hong Kong is a special administrative region of China, and while crypto trading is legal for big investors, it is banned for retail investors. However, new laws that will come into effect by June 1 will allow all kinds of investors to invest in cryptocurrencies without major restrictions.
Conclusion
China’s decision to fund and support the Web3 sector is a positive step towards greater innovation and development in the internet world. It could also signal that China is open to embracing cryptocurrencies and introducing crypto-friendly policies in the future. With ongoing developments and changes in crypto regulations around the world, it’s clear that the industry is rapidly evolving and will continue to do so in the coming years.
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