Recent report shows that China aims to expand research and development in crypto industry despite having banned cryptocurrency trading in 2021. The Beijing Municipal Science and Technology Commission, also known as the Administrative Commission of Zhongguancun Science Park, presented the “Web3 Innovation and Development White Paper” at the Zhongguancun Forum. The document recognizes Web 3 technology as an important trend for the future of the Internet industry. The white paper emphasizes Beijing’s commitment to supporting policies and advancing technology to foster the growth of the Web 3 technology.
The commission aims to make Beijing a leading global hub for digital innovation. They plan to allocate at least 100 million yuan ($14 million) per year until 2025. Yang Hongfu, the director of Zhongguancun Chaoyang Park management committee, announced this funding at the forum, highlighting Zhongguancun’s reputation as China’s Silicon Valley.
Market effect of China’s Web 3 development program
Binance CEO Changpeng Zhao found the timing of the white paper release noteworthy, especially with Hong Kong’s cryptocurrency regulations starting on June 1. Hong Kong’s Securities and Futures Commission recently introduced new rules allowing retail investors to trade cryptocurrencies from that date. This contrasts with the United States’ approach of tightening regulations on cryptocurrencies. While China banned the use of cryptocurrencies in 2021, the release of the Web3 white paper suggests a possible shift in China’s stance.
On May 23, a segment about cryptocurrencies aired on China Central Television, featuring Bitcoin and a Bitcoin ATM in Hong Kong. Zhao from Binance mentioned the significance of this coverage, as it has historically coincided with market upswings. The segment also mentioned nonfungible tokens but has been removed since then.
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