On May 27, Beijing released an “Internet 3.0 Innovation and Development” white paper outlining advancements and support for Internet 3.0 (web3) and the metaverse, according to reports Chinese media, ThePaper.
However, as Binance CEO Changpeng Zhao (CZ) Underline on Twitter, the publication of the white paper is just days away from the next opening of applications on June 1 for Hong Kong cryptocurrency exchanges.
“Interesting moment 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 for cryptocurrency exchanges could signal the start of a more open approach to digital assets in the region.
Jason Fang of Sora Ventures has shared a similar thought many times on CryptoSlate’s SlateAsia podcast, with Fang considering Hong Kong to be the “test bed” for crypto regulation in the region. The development therefore raises questions about the potential implications and impact on the wider cryptocurrency industry in the region.
Web3 white paper.
The report was released under a partnership between the Beijing Municipal Science and Technology Commission and the Zhongguancun Science Park Management Committee, titled “White Paper on Internet 3.0 Innovation and Development of Beijing (2023)”. It would emphasize a commitment to Web3 and Metaverse innovations.
According to The Paper, published by state-backed media conglomerate Shanghai United, Chaoyang District plans to invest no less than 100 million yuan per year in special funds to support the construction of the web3 industry ecosystem. This is part of a district effort to become a leading region for “industry Internet 3.0 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 are expected to be similar to those for traditional financial institutions from June 1, marking a significant shift in the region’s approach to cryptocurrency regulation. Additionally, Chan underscored 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 Future Commission (SFC) is now relaxing Officials (RO) requirements on cryptocurrency exchanges in preparation for the opening of applications for crypto trading licenses on June 1 under the Securities and Exchange Commission. Futures Ordinance (SFO) and the Anti-Money Laundering and Terrorist Financing Ordinance (AMLO), as reported by CryptoSlate May 24.
An RO refers to a person who occupies 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 for a specific exchange. Therefore, ROS needs extensive experience as it is a prerequisite for obtaining the required license.
With a current shortage of experienced ROs in the crypto industry, the SFC has revised its requirements so that exchanges only need two ROs instead of four, taking a “pragmatic approach” in light of the shortage. of talent.
All eyes on mainland China?
The crypto community will likely be watching developments in Beijing and Hong Kong closely as they could shape the future of the digital asset industry in the region and beyond, with possible benefits including increased innovation and a more transparent regulatory environment, as well as challenges such as meeting compliance requirements and adapting to new regulations.