In a move that aligns with new digital asset regulations in Hong Kong, Beijing has released a white paper aimed at fostering innovation and advancing the Web3 industry. The “Web3 Innovation and Development White Paper” was presented at the Zhongguancun Forum by the Beijing Municipal Science and Technology Commission, known as the Administrative Commission of Zhongguancun Science Park. The paper acknowledges Web3 technology as an inevitable trend for the future of the internet industry.
The Beijing government intends to establish the city as a leading global hub for digital economy innovation, with plans to allocate a minimum of 100 million yuan ($14 million) annually until 2025. Yang Hongfu, the director of the Zhongguancun Chaoyang Park management committee, announced the funding during the forum, emphasizing Zhongguancun’s reputation as China’s Silicon Valley.
The white paper emphasizes Beijing’s commitment to enhancing policy support and accelerating technological advancements to foster the growth of the Web3 industry. The timing of the release has drawn attention, particularly as Hong Kong’s cryptocurrency regulations are set to take effect on June 1. The Securities and Futures Commission of Hong Kong recently introduced a new rulebook for the cryptocurrency industry, allowing retail investors to engage in crypto trading and implementing a licensing framework for crypto platforms.
While the United States has been tightening regulations on cryptocurrencies, Hong Kong’s efforts to attract crypto companies stand in stark contrast. China banned the use of cryptocurrencies in 2021, but the release of the Web3 white paper suggests a potential opening towards the industry. A recent cryptocurrency segment aired on China Central Television, featuring prominent coverage of Bitcoin and a Bitcoin ATM in Hong Kong. The significance of this coverage, historically associated with market upswings, was highlighted by Binance CEO Changpeng Zhao.