Beijing Publishes White Paper on Web3 Innovation and Development

Beijing’s municipal Science and Technology Commission published the “White Paper on Web3 Innovation and Development” (2023). The local publication The Paper reports.

In the document, Web3 technologies are described as “an inevitable trend for the future development of the internet industry.” According to the white paper, Beijing plans to become an international innovation hub for the digital economy.

As part of the initiative, Chaoyang District will invest at least 100 million yuan annually through 2025 (more than $14 million at the exchange rate at the time of writing). The head of Zhongguancun Science and Technology Center — the “Chinese Silicon Valley” — Yan Hongfu spoke at the forum.

According to the publication, the white paper also states Beijing’s aim to strengthen political support and accelerate technological breakthroughs for Web3 development.

Binance CEO Changpeng Zhao described the announcement as an “interesting timing” in the context of expectations around June 1 in Hong Kong.

Interesting timing on this Web 3.0 white paper from the Beijing government tech committee with the June 1st anticipation in Hong Kong. pic.twitter.com/0Ts1UB0jnL

— CZ :large_orange_diamond: Binance (@cz_binance) May 27, 2023

According to rules proposed in February, from June 1, 2023 all centralized platforms operating in Hong Kong or dealing with local investors must hold a license from the SFC.

In September 2021, the People’s Bank of China, in a joint statement with nine state bodies, classified cryptocurrency operations as illegal financial activity. In February 2022, China tightened criminal liability for illegal fundraising in digital assets.

In January 2023, Hong Kong authorities announced their willingness to welcome cryptocurrency companies from around the world. According to former BitMEX CEO Arthur Hayes, this signals China’s intention to return to the industry.

The head of China Pacific Insurance Shan Zhong believes that Beijing has not changed its stance on cryptocurrencies, despite their adoption in Hong Kong. The firm launched two investment funds in the region focused on digital assets.

In February, Bloomberg reported undisclosed support by the Chinese government for Hong Kong’s cryptocurrency initiatives. According to sources, Beijing officials have become frequent guests at industry events, and their attitude has been cordial.

In May Zhao noted that a cryptocurrency-related report on China Central Television caused a stir in local communities. He said, “Historically such stories have led to bullish rallies.”