China’s Whitepaper on Web3 Innovation: Focus Areas and Funding Initiatives

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On May 27, the municipal government of Beijing announced the release of a whitepaper providing information on Web3 innovation and development in China. It focuses on innovative research areas such as artificial intelligence (AI), XR interactive terminals, and content production tools.

The Municipal Commission of Science and Technology of Beijing presented the whitepaper during the Zhongguancun Forum. Despite existing restrictions on cryptocurrencies, Beijing is showing interest in Web3 and plans to allocate 100 million yuan (approximately $14 million) annually until 2025 to drive various related initiatives.

China’s whitepaper highlights Web3 industry focus areas

China’s whitepaper emphasizes key technologies like blockchain, VR, and AI for their industrial application in Web3. Additionally, it underscores the government’s intention to provide all necessary political support to accelerate technological advancements and foster rapid growth in the Web3 industry.

The whitepaper also mentions emerging applications, such as digital verifications and NFT collections, which have experienced rapid growth and development. It highlights the active involvement of social organizations related to Web3 and the gradual rationalization of the global capital market.

Moreover, Beijing aims to establish a leadership position in the country in terms of development policies and innovative companies by implementing comprehensive measures to accelerate the construction of an internationally competitive Web3. The city proposes to strengthen political support and organizational guarantees to achieve its objectives of standing out as an innovative city.

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Will Hong Kong open its doors to cryptocurrencies?

Changpeng Zhao, CEO of Binance, commented on the whitepaper release, noting that it is interesting that it coincides closely with June 1, the day on which new updates are expected regarding the regulatory framework on cryptocurrencies.

The idea of Hong Kong legalizing cryptocurrencies may not be so far-fetched, considering that earlier this year, Paul Chan, the Financial Secretary of Hong Kong, announced the completion of the regulatory framework for cryptocurrencies. Despite cryptocurrency volatility, he emphasized the government’s commitment to becoming a crypto hub.

Furthermore, during an April press conference, the secretary stated that for Web3 to continue its innovative development path, the government must adopt a strategy that “emphasizes both proper regulation and development promotion.”

This means that, unlike other countries like the United States, where regulations or the lack of clear regulations on the crypto ecosystem have led to the closure of several cryptocurrency exchanges, Hong Kong plans to be less restrictive and more friendly to crypto companies.