Bridging the Bay: Web3 Financing Platform Proposed in China

A Web3 financing platform proposal has emerged from China’s critical political meetings, the “Two Sessions,” currently underway in Beijing. Johnny Ng, a Hong Kong delegate to the top political advisory body, the CPPCC National Committee, submitted the suggestion this week. The proposed platform would bridge the southeastern Greater Bay Area, connecting the financial hubs of Hong Kong, Macao, and Guangdong.

These meetings serve as a platform for leaders and industry figures to discuss pressing issues. Notably, China maintains a strict ban on crypto trading and mining activities within the mainland. However, Hong Kong has taken a contrasting approach, actively embracing the crypto space.

In June 2023, Hong Kong officially launched its crypto licensing regime for virtual asset trading platforms. This move paved the way for licensed exchanges, like HashKey and OSL, to offer retail crypto trading services, establishing Hong Kong as a potential regional hub for the industry.

Intriguingly, despite the mainland’s crypto ban, China’s Ministry of Industry and Information Technology expressed plans in December 2023 to formulate strategies for Web3 development. This shift in stance indicates a potential softening towards specific aspects of the blockchain ecosystem. The Ministry’s plans include encouraging the development of non-fungible tokens (NFTs) and decentralized applications (dApps). Additionally, they intend to explore Web3’s potential in digital identity authentication and management through pilot programs.

Ng’s proposal appears to bridge this apparent divide. By creating a dedicated Web3 financing platform within the Greater Bay Area, China could potentially foster innovation and development in the blockchain and digital asset space within a controlled environment. This platform could leverage Hong Kong’s established regulatory framework, creating a unique ecosystem for blockchain and digital asset projects.

The coming months will be crucial in determining the fate of this proposal. If approved, this Web3 financing platform could bridge the gap between China’s mainland restrictions and Hong Kong’s burgeoning crypto hub.

This collaboration has the potential to create a unique and dynamic ecosystem for blockchain and digital asset projects in the Greater Bay Area, potentially establishing the region as a frontrunner in Web3 innovation.

However, questions remain. How will this platform operate within the context of China’s mainland crypto ban?

Will Hong Kong’s regulations be the primary framework, or will a new set of regulations be established specifically for the platform? Additionally, how will participation from Macao be integrated?

Despite these uncertainties, Ng’s proposal presents a fascinating possibility. It signifies a potential shift in China’s approach to blockchain technology and digital assets. If implemented successfully, this Web3 financing platform could become a blueprint for controlled and regulated innovation within the broader Web3 landscape.