On May 27, Beijing released an “Internet 3.0 Innovation and Development” white paper outlining progress and support for Internet 3.0 (web3) and the metaverse, according to reports from the Chinese media, ThePaper.
However, as Binance CEO Changpeng Zhao (CZ) marked on Twitter, the publication of the white paper is just days after the upcoming application opening on June 1 for cryptocurrency exchanges in Hong Kong.
“Interesting timing on this Web 3.0 white paper from the Beijing government technical committee with the anticipation of June 1 in Hong Kong.”
The simultaneous release of Beijing’s web3 white paper and Hong Kong’s regulatory push on cryptocurrency exchanges could be the start of a more open approach to digital assets in the region.
Sora Ventures’ Jason Fang shared similar thoughts on CryptoSlate’s SlateAsia podcast on numerous occasions, with Fang seeing Hong Kong as the “testbed” for crypto regulation in the region. The development thus raises questions about the possible implications and impact on the wider cryptocurrency industry in the area.
Web3 White Paper.
The report was released as a collaboration between Beijing Municipal Science and Technology Commission and Zhongguancun Science Park Management Committee, titled “Beijing Internet 3.0 Innovation and Development White Paper (2023).” It reportedly highlights a commitment to web3 and Metaverse innovations.
According to The Paper, published by the state-backed media conglomerate Shanghai United, Chaoyang District plans to invest no less than 100 million yuan a year in dedicated funds to support the building of the web3 industry ecosystem. This is part of the district’s effort to become a leading region for the “Internet 3.0 Industry” by 2025.
Hong Kong is opening up to crypto.
Hong Kong finance secretary Paul Chan announced the completion of the government’s crypto regulatory framework earlier this year. Regulatory requirements for virtual asset providers will be similar to those for traditional financial institutions starting June 1, marking a significant change in the region’s approach to cryptocurrency regulation. In addition, Chan highlighted Hong Kong’s commitment to supporting the growth of the Web3 industry in the region, aiming to become a hub for crypto innovation.
The Hong Kong Securities and Futures Commission (SFC) is now relaxing requirements for responsible officers (ROs) on cryptocurrency exchanges in preparation for the June 1 application opening for crypto trading licenses under the Securities and Futures Ordinance (SFO) and Anti-Money Laundering and the Terrorist Financing Regulation (AMLO), as reported by CryptoSlate on May 24.
An RO refers to an individual who holds a crucial position within the senior management of a company. To become an RO, they must obtain a license from the SFC and receive approval as an RO on a specific exchange. Therefore, ROS needs extensive experience, as this is a prerequisite for obtaining the required license.
With a current shortage of experienced ROs in the crypto sector, the SFC has revised its requirements so that exchanges now require only two ROs instead of four, taking a “pragmatic approach” in light of the talent crisis.
All eyes on mainland China?
The crypto community is likely to closely monitor the unfolding developments in Beijing and Hong Kong as they could shape the future of the digital asset industry in the region and beyond, with potential benefits such as increased innovation and a more transparent regulatory environment, as well as challenges such as meeting compliance requirements and adapting to new regulations.