The Ministry of Industry and Information Technology said last Tuesday that it plans to create strategy documents to clarify the development path of web3.

The central government said that “the encouragement of the exploration of new business models such as NFTs and decentralized applications, the acceleration of innovative applications and the construction of a digital ecosystem for Web 3.0, along with emphasis on key areas such as governance and industry.

The published document was prepared in response to questions from Johnny Ng, a member of the CPPCC National Committee, the country’s highest political advisory body.

The Ministry plans to initiate pilot studies related to distributed digital identity to explore web3 digital identity verification and management, it added.

The central government’s latest encouragement for web3 development came after many local governments pledged to develop the metaverse industry earlier this year. Sichuan, a province of China and once a center of cryptocurrency mining before the country’s mining ban, pledged in August to make the metaverse industry reach a market size of 250 billion yuan ($35.1 billion) by 2025.

China has banned complete crypto trading since September 2021, trade of NFTs produced in the country continued but remained in a regulatory gray area.

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Real Name DID

Earlier this month, the state-backed Blockchain-based China Service Network launched a national-level real-name decentralized identification system to support the country’s Ministry of Public Security research institute.

The developer of China’s national blockchain infrastructure BSN said that “China RealDID is seen as an extension of Anicert’s Cyber Trusted Identity” and added that the launch of the system was “a bold step in the protection of personal data”. According to the statement, thanks to the system, users can register or log in to a commercial website with their DID addresses and private keys.

BSN also said, “Despite its ban on cryptocurrencies, China’s progress in blockchain technology, especially in the field of Web3 with the initiative of the Real Name Decentralized Identifier, is noteworthy”.

The post China Continues to Develop Despite Crypto Ban! appeared first on Coin Engineer.

In a joint blog post released on Friday, the Securities and Futures Commission and the Hong Kong Monetary Authority stressed that some risks associated with crypto products that could be difficult to understand for cryptocurrency investors are complex.

The revised guideline draft plans to offer certain cryptocurrencies only to professional investors from now on.

As per these guidelines, for instance, an exchange-traded fund (ETF) overseas, which is not a derivative of a virtual asset (VA), will be classified as a product, commonly suitable only for professional investors.

In addition, authorities emphasized that brokers need to confirm their customers’ understanding of investing in virtual assets or related products before proceeding with any transaction.

Moreover, brokers will not be able to confirm that customers have the financial stability necessary to handle the risks and possible losses associated with the buying and selling of products related to virtual assets.

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Authorities have asserted that specific rules regulate these products, ensuring clearer pricing and reducing susceptibility to market tricks.

As a result, they deem these products safer and more transparent, making them accessible not only to professional investors but to all investors.

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The post Hong Kong to Update Cryptocurrency Policy! appeared first on Coin Engineer.