Contrasting Web3 Policies , Hong Kong's Virtual Asset Focus and Beijing's Internet 3.0 Emphasis

Starting from June 1st, the guidelines for virtual asset trading platform operators and the anti-money laundering guidelines (referred to as the “Guidelines”) issued by the Hong Kong Securities and Futures Commission (SFC) have officially come into effect. The SFC has begun accepting applications for licenses from virtual asset trading platform operators and allows retail investors to use licensed virtual asset trading platforms.

After much anticipation, the application date finally took effect on the first day of June. In the past month, Beijing also released the “Beijing Internet 3.0 Innovation and Development White Paper.” The white paper emphasizes that Internet 3.0 encompasses immersive sensory experiences and the integration of real and virtual economic activities, including the concepts of the metaverse and Web3. These concepts reflect the development trend of human society and the economy shifting from the real to the virtual, virtual empowering the real, and the integration of the real and virtual.

So, what are the differences between Hong Kong’s Web3 policies and Beijing’s Internet 3.0?

1. Different Nature:
   Hong Kong’s Web3 policies are supported and led by the Hong Kong SAR government, with involvement from multiple government departments and relevant individuals, including the Chief Executive of the Hong Kong SAR, Financial Secretary, Securities and Futures Commission, and the Legislative Council.

On the other hand, Beijing’s “Beijing Internet 3.0 Innovation and Development White Paper” is released by the Beijing Municipal Science and Technology Commission and the Zhongguancun Science and Technology Park Management Committee. Its aim is to develop Beijing into an Internet innovation center through policy support and funding.

The Beijing Municipal Science and Technology Commission is a consulting body for the Beijing Municipal Government, responsible for coordinating, organizing, and implementing the city’s scientific and technological policies.

2. Different Focus:
   Hong Kong focuses on virtual assets, allowing investors to trade specific “large-market value tokens” such as Bitcoin and Ethereum on licensed exchanges with relevant safeguards. The Securities and Futures Commission of Hong Kong will also start issuing licenses to cryptocurrency exchanges.

Beijing’s Internet 3.0 white paper focuses on artificial intelligence (AI) and the metaverse. Benefiting from the rapid development of technologies such as AI, blockchain, and graphics processing, the level of user experience and production efficiency in virtual digital characters, virtual live streaming, game production, and more are significantly improved. It is expected to become one of the first profitable application areas in the future. The white paper mentions that Internet 3.0 will give birth to new applications and new forms of industry in fields such as consumption, industry, governance, city management, healthcare, etc., promoting higher-level digital and intelligent economic and social forms for humanity.

3. Different Visions:
   The Hong Kong SAR government is determined to compete as a global virtual asset hub. In the 2023-2024 Budget Speech released in February, it was mentioned that Hong Kong Cyberport has established a Web3 base, allocating HKD 50 million to accelerate the development of the Web3 ecosystem, including organizing international seminars, enabling industry and enterprises to stay at the forefront of development, promoting cross-sector business cooperation, and hosting more youth workshops. Developing Web3 and other financial technology innovation industries, embracing a broader digital space, makes Hong Kong an excellent choice.

Beijing strives to build a global innovation center. The goal of the “Beijing Internet 3.0 Innovation and Development White Paper” is to allocate at least 100 million RMB (approximately 14 million USD) annually until 2025 to build Beijing into a global innovation center. This funding will be used to strengthen policy support, promote technological progress, and facilitate the development of the Web3 industry. The committee believes that the new allocation of funds will contribute to making Beijing a significant global innovation center in the field.

Apart from the above, on May 31st, the Chinese Ministry of Industry and Information Technology officially released the national standard “Reference Architecture for Blockchain and Distributed Ledger Technology” (GB/T 42752-2023). This is China’s first approved national standard in the field of blockchain technology, further accelerating the standardization process of blockchain in China and laying the foundation for the high-quality development of the blockchain industry. On May 26th, Deputy Minister of Industry and Information Technology, Wang Jiangping, stated the government’s forward-looking layout for future industries such as artificial intelligence, Web3.0, advanced computing, and 6G. All these signs indicate that the government is increasingly focusing on the development of Web3 and blockchain.

In summary, both Hong Kong and Beijing attach great importance to the Internet revolution brought about by blockchain technology. However, they have different emphases. Hong Kong aims to become a global virtual asset hub, focusing on the development and application of technology. On the other hand, Beijing aims to build a global innovation center, emphasizing the innovation of underlying technologies such as blockchain, AI, and big data in the industry. Whether in Hong Kong or Beijing, positive signals have been released to the market regarding the development of Web3 and blockchain.