Can China’s Crypto Ban Coexist with Metaverse Goals?

A string of recent announcements have put China’s metaverse ambitions in the spotlight. But what does it all mean for the country’s crypto policy?

Since 2021, China has taken a hard line on crypto trading. And unlike startups elsewhere, the country’s nascent metaverse sector has had to work around a strict ban on dealing with cryptocurrencies.

Now, state support for the industry is raising questions over the sustainability of the government’s current stance.

Zhengzhou Eyes 200 Billion CNY Metaverse Space

One city vying to take the crown as China’s preeminent Metaverse hub is Zhengzhou in Henan province.

There, the municipal government recently announced an ambitious plan to build the emerging metaverse sector into a 200 billion yuan per year industry by 2025.

To promote growth in the space, the City has set up a 10 billion yuan investment fund. Other incentives for metaverse companies in the area include rent subsidies and grants.

Alongside the funding policies it announced, Zhengzhou’s plans listed blockchain as a key technology for the metaverse sector. But without access to the world’s major digital assets, companies may struggle to innovate at the same pace as their peers elsewhere.

In lieu of the major public blockchains upon which metaverse developers typically build in other countries, Chinese tech firms often deploy private or state-backed blockchains.

In documents outlining its vision, the Zhengzhou government said it would encourage the development of consortium and private blockchains. It will also establish a digital marketplace for NFTs, which are not subject to the same restrictions as fungible tokens.

Beijing Publishes Web3 Whitepaper

Hot off the back of the launch of Zhengzhou’s metaverse strategy, municipal authorities in Beijing published a landmark whitepaper on Web3 innovation.

The whitepaper was reportedly announced at the high-profile Zhongguancun Forum by the Beijing Municipal Science and Technology Commission. A version of the Web3 Innovation and Development White Paper was later published by Chinese media outlets.

Although not an official policy document, the whitepaper outlines a blueprint for innovation that gives insight into Beijing’s ev

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Author: James Morales

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