The Chinese government’s approach to crypto and blockchain has been somewhat paradoxical. While issuing a total ban on crypto mining and trading, the country has been more liberal with other tech, like NFTs. Now, authorities are making a significant turn when it comes to Web3.
Most recently, China’s Ministry of Industry and Information Technology has aggressively pursued the development of Web3 and blockchain technologies. This initiative aims to make the country a leader in decentralized technology.
Chinese Authorities Embrace Blockchain and Web3
On Tuesday, December 19, the Chinese Ministry of Industry and Information Technology published a document listing recommended initiatives for the country in the Web3 space. The document proposes several key initiatives for making China a leader in emerging technologies.
The Ministry intends to bolster the policy framework surrounding Web3 technologies. They aim to ensure harmonized growth of the Web3 industry while ensuring the necessary regulatory oversight.
A significant emphasis is placed on advancing research in blockchain technology and other Web3 components. This involves nurturing homegrown technologies and keeping pace with global innovations in the field.
Recognizing the international nature of Web3, the plan also focuses on actively engaging in creating global standards for the industry. This includes influencing and adapting to international norms in Web3 technologies, aiming to assert China’s role in the global discourse.
The initiative envisions the integration of Web3 technologies across various industries, including healthcare, education, and tourism, signaling a broad application spectrum of these technologies in China’s digital infrastructure.
China Bans Crypto, Embraces Web3, and the Metaverse
The latest document is part of a larger initiative by the Ministry of Industry and Information Technology to embrace decentralized tech.
For instance, in September, the Ministry released a 3-year action plan on the Metaverse. This comprehensive plan aims to incubate three to five metaverse startups that will achieve global significance by 2025.
China’s aggressive push into Web3 and blockchain technology starkly contrasts its strict stance on cryptocurrencies. The nation imposed a comprehensive ban on all cryptocurrency-related activities, including trading. This move effectively curtails the operation of crypto exchanges within China.
On the Flipside
Despite a total crypto ban, Chinese citizens can still hold digital assets in Hong Kong. China first cracked down on crypto mining to reach its carbon emission targets. Before the crackdown, China controlled the largest share of crypto mining globally, largely due to its low energy prices.
Why This Matters
China is the second-largest global economy and a major player in the tech space. Its initiatives in Web3 can significantly shape the industry.
Source : DailyCoin by David Marsanic / Dec 20, 2023