China Embraces Web3: A Shift in Cryptocurrency Policy?
China has had a controversial stance on cryptocurrency, including heavy regulation and outright bans on mining and trading. However, recent developments suggest that the government may be willing to embrace the potential of Web3 technology.
Web3 Adoption in China
The Beijing Municipal Science & Technology Commission, also known as the Administrative Commission of Zhongguancun Science Park, recently launched a whitepaper to promote innovation and development within the Web3 industry. Titled “Web3 Innovation and Development White Paper (2023),” the paper highlights the technology’s status as an “inevitable trend for the future development of the Internet industry.”
The committee’s goal is to establish Beijing as a global hub for the digital economy, with the city’s Chaoyang District committing to spending at least 100 million yuan (about $14 million) through 2025. According to Yang Hongfu, director of the management committee of Zhongguancun Chaoyang Park, this investment will help develop a sustainable Web3 ecosystem in the region.
Chinese Policy Change on Crypto?
The timing of the white paper’s release is particularly interesting, as it coincides with the upcoming implementation of Hong Kong’s cryptocurrency legislation. From June 1, crypto exchanges in Hong Kong can apply for licenses from the financial watchdog, taking a significant step in the adoption of digital currencies.
Changpeng Zhao (CZ), the CEO of Binance, noted the potential significance of these events, particularly as Chinese state television CCTV aired a segment about the new regulation regarding digital currencies in Hong Kong. CZ labeled this as a “big deal” and considers it highly bullish, suggesting that China may be shifting its stance on cryptocurrency.
While China’s relationship with cryptocurrency has been tumultuous thus far, recent events suggest that the government may be willing to embrace the potential of Web3 technology. The launch of the white paper and the broadcast of the Hong Kong crypto legislation on state television both indicate a significant shift in policy towards digital currencies. The next few years will determine whether China will truly become a hub for the digital economy, but the signs are promising.