China's Ministry of Industry Aims to Foster NFT and Dapp Growth Despite Crypto Ban

Disclosure: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. By using this website, you agree to our terms and conditions. We may utilise affiliate links within our content, and receive commission.Source: AdobeStock Lukas / HlavacChina’s Ministry of Industry and Information Technology has published a document outlining its current and future work on developing Web3 and related technologies, including metaverse, non-fungible tokens (NFTs), and decentralized apps (dapps).

The document is a response to a proposal by Wu Jiezhuang, a member of the National Committee of the Chinese People’s Political Consultative Conference.

The Ministry examined Wu’s ‘Proposal on Promoting the Development of Web3 Industry,’ along with the Chinese Academy of Sciences and the China Association for Science and Technology.

They concluded that Wu’s suggestions align with the Ministry’s direction, as the latter “attaches great importance” to the Web3 industry development.

According to the response,

“Your suggestions on strengthening resource support for Web3.0 technology research and development, strengthening technical supervision and management, encouraging international cooperation, and strengthening publicity and promotion are forward-looking and strategic, and are highly consistent with the key tasks of our ministry.”

In particular, the Ministry acknowledged China’s advantages in developing Web3, including proper industrial foundation and broad development space.

Fostering NFTs and Metaverse

The response outlined several steps the country has already taken to support the industry. Notably, this comes despite the 2021 blanket crypto ban.

Firstly, the Ministry and the Cyberspace Administration of China have issued a series of policies, including the Guiding Opinions on Accelerating the Application of Blockchain Technology and Industrial Development.

Also, the National Standardization Committee worked with the Ministry to establish the National Blockchain and Distributed Accounting Technology Standardization Technical Committee to provide an environment for blockchain-based Web3 development.

Next, research institutions continue to explore Web3-related technologies. This includes metaverse and NFT.

Furthermore, the Ministry supports the establishment of several data institutions, such as the Beijing International Big Data Exchange and the Shanghai Data Exchange. These provide a “testing ground” for applications.

“The Cyberspace Administration of China, together with the Propaganda Department of the Central Committee, the Supreme People’s Court, and other departments, organized and carried out national blockchain innovative application pilot actions, forming typical cases and experiences that can be replicated and promoted in 16 fields such as energy, law, copyright, and finance.”

Lastly, the country has established working groups with international organizations to collaborate on developing international and domestic standards.

Four Future Steps

In response to Wu’s suggestions, the Ministry said it would strengthen collaborations with relevant departments to promote Web3 innovation and “high-quality industrial development.”

It outlined its four steps in that direction.

First: improve the research of Web3, formulate a development strategy, and clarify the application model.

It will:

“Focus on key areas such as government affairs and industry, encourage the development of new business models such as NFT and distributed applications (DApp), and accelerate the innovative application of Web3.0 and the construction of a digital eco.”

Second: strengthen technical research and supervision. The aim is to support enterprises, universities, and research institutions in achieving breakthroughs in key core technologies in cross-chain, privacy computing, smart contracts, etc.

Third: carry out international exchanges and cooperation. The Ministry and relevant actors will “closely follow” the latest trends in Web3 from the international political, industry, academic, and research circles.

Fourth: increase publicity and promotion. The Ministry will work to improve the public’s understanding of Web3. It will promote application pilots such as distributed digital identity (DID), form demonstration projects, and build a technology and industrial application exchange platform, among other projects.