Beijing publishes white paper on Web3 innovation & development; can crypto make a comeback?

In order to accelerate the creation of a significant Web 3.0 innovation hub on a global scale, Beijing is now putting together a variety of  measures in the areas of vital technologies. Beijing, the capital of China, published a white paper on 27 May 2023, with the goal of encouraging innovation and growth in the web3 sector.

What’s the ‘web3 white paper’?

In order to promote innovation and expand the web3 sector, the city administration of Beijing has released a white paper. The white paper focuses on key areas of development in the web3 sector, including artificial intelligence (AI), XR interactive terminals, and content creation tools. It recognises the quick development of innovative uses like digital populations and collections.
 

According to a local media outlet called The Paper, the Beijing Municipal Government Science and Technology Commission, formally known as the Zhongguancun Science Park Administrative Commission, unveiled ‘The White Book of Web3 Innovation and Development’  at the Zhongguancun Forum. The web3 technology is acknowledged in the paper as a certain trend for the future growth of the internet.

The commission plans to contribute at least 100 million yuan (Rs. 1.4 crore or $14 million) annually until 2025 with the objective of making Beijing a well-known international innovation hub for the digital economy. During the meeting, Yang Hongfu, the director of the Zhongguancun Chaoyang Park management committee, disclosed the funds while highlighting the fact that Zhongguancun is regarded as China's Silicon Valley.

Does this affect China’s stance on crypto?

Changpeng Zhao, CEO of Binance, called the timing of the white paper's release ‘noteworthy,’ pointing out that Hong Kong's cryptocurrency rules are scheduled to go into effect on 1 June 2023.
 

The Securities and Futures Commission of Hong Kong revealed a new regulation for the cryptocurrency sector, declaring that retail investors would be permitted to engage in crypto trading beginning on 1 June 2023 to go along with the introduction of a new licensing framework for crypto platforms.

In contrast to the United States' ongoing crackdown on cryptocurrencies, Hong Kong is making attempts to attract crypto companies. In 2021, China banned the use of cryptocurrencies; however, with the publication of the web3 white paper, it now seems like China is beginning to open up to the sector.