The Beijing Municipal Science and Technology Commission recently released a white paper aimed at fostering innovation and development within the Web3 industry. Named the “Web3 Innovation and Development White Paper,” it was unveiled at the Zhongguancun Forum, with a goal of establishing Beijing as a global innovation hub by allocating at least CNY100m ($14m) annually until 2025. This funding is expected to enhance policy support and expedite technological advancements to drive the growth of the Web3 industry.
Zhongguancun, often dubbed as China’s Silicon Valley, is poised to benefit from the new funding allocation, which could potentially make the area a prominent global innovation hub in the digital economy. Despite China’s ban on the use of cryptocurrencies in 2021, this white paper hints at an opening up to the industry, particularly following the cryptocurrency segment aired on China Central Television on 23 May. The segment emphasized the importance of NFTs and featured the Bitcoin logo and a Bitcoin ATM in Hong Kong.
The timing of the release is interesting, as noted by Binance CEO Changpeng Zhao in a tweet, given that Hong Kong’s cryptocurrency regulations are set to begin on 1 June. Hong Kong’s Securities and Futures Commission recently unveiled a new rulebook for the cryptocurrency industry, allowing retail investors in the city to trade specific “large-cap tokens” on licensed exchanges, provided safeguards such as knowledge tests, risk profiles, and reasonable exposure limits are implemented.
The agency will also begin issuing licenses to crypto exchanges; however, licensed platforms must comply with robust investor protection measures covering onboarding, governance, disclosure, and token due diligence and admission before providing trading services to retail investors.
Moreover, the Hong Kong Police Force recently launched CyberDefender, a new metaverse platform developed by the Cyber Security and Technology Crime Bureau (CSTCB), for educating the public about the potential dangers associated with Web3 and the metaverse. This platform is aimed at preparing Hong Kong citizens for the upcoming challenges in the digital age while focusing on technology crime prevention.
While the release of the Web3 white paper indicates China’s potential change in stance towards cryptocurrencies and the subsequent steps taken by Hong Kong towards regulation and education, it remains crucial for investors and the public to weigh the advantages of embracing this technology against the possible drawbacks. A healthy balance of skepticism and optimism may prove vital as the world continues to advance deeper into the digital age.
Source: Cryptonews
