Crypto founders, including prominent figures like Binance CEO Zhao Changpeng, have expressed optimism about the Chinese government’s support for Web3, despite the absence of any mention of cryptocurrencies in a recent white paper. They see this as an encouraging sign, linking it to Hong Kong’s efforts to establish itself as a crypto hub. Amid increasing regulatory scrutiny in other parts of the world, these crypto founders, such as Zhao, Huobi adviser Justin Sun, and Animoca Brands co-founder Yat Siu, have praised the “Beijing Internet 3.0: Innovation and Development White Paper.”
Although the paper does not discuss cryptocurrencies banned in mainland China, it presents a comprehensive view of the next-generation internet, encompassing elements such as blockchain, the metaverse, and artificial intelligence. The concept of Web3, which is based on blockchain and decentralised technologies, aligns with the idea of a decentralised web. While Web3 is often associated with cryptocurrencies and non-fungible tokens (NFTs), the paper focuses more on the metaverse than blockchain technology.
The absence of explicit references to cryptocurrencies in the paper is not surprising, given China’s previous stance on trading and the legality of such assets. However, crypto founders with ties to China see the white paper as a positive indication, hoping for regulatory changes in Hong Kong that could boost the crypto industry and potentially lead to a new bull run. They view Hong Kong as a potential base for Chinese crypto activities and believe that China’s commitment to Web3 reflects a step towards recognizing the transformative potential of decentralised systems and blockchain-based solutions.
While figures like Zhao and Sun have faced legal challenges in the US, the moves in Hong Kong are seen as promising, suggesting a potential softening of China’s stance on cryptocurrencies. By positioning Hong Kong as a financial centre and a gateway for digital assets, the city will embrace the opportunities presented by Web3 and become a global leader in this field. In addition, the coverage of Hong Kong’s new crypto regulations by Chinese state broadcaster CCTV has also been seen as significant, indicating the potential for a bullish market.
