China Blockchain Industry Regulatory Policy Series Report ( Three ): Five Major Cities Blockchain Policy Layout

The blockchain layout of the five cities of Beijing, Shanghai, Guangzhou, Shenzhen, and Hangzhou is closely related to their own economic, talent, and technological advantages. With the location advantages in the lead, the governments of these five cities have also introduced a series of policy plans to support blockchain development.

Beijing: Early policy layout, strict regulation

As the political and economic center of the country, Beijing is also showing vibrant vitality in the field of technology. The Beijing government began to pay attention to Blockchain technology as early as 2016 and made policy arrangements, leading the nation with this foresight.

In February 2016, the Zhongguancun Blockchain Industry Alliance was established, and the Blockchain International Incubation Center was also set up. In December 2016, Beijing classified blockchain as a technology for internet finance. Since then, Beijing has introduced multiple policies to encourage the exploration of innovative technologies such as blockchain in the financial sector.

However, Beijing has very strict regulations on the blockchain industry, especially in the cryptocurrency sector. In August 2018, Chaoyang District required that all commercial venues must not host any form of virtual currency promotion activities.

Beijing's policy direction is closely related to its financial and talent advantages. In the future, in addition to innovation in the financial sector, Blockchain may also see innovations in regulatory technology due to Beijing's unique political location.

Shanghai: Catching Up

Although Shanghai is one of the earliest gathering places for the blockchain industry in China, it started relatively late in terms of policy support. In June 2011, China's first Bitcoin trading platform, BTCC, was founded in Shanghai. In 2015, Wanxiang Blockchain Lab held the first Global Blockchain Summit in Shanghai.

But it was not until 2018 that Shanghai began to catch up in the Blockchain field. On May 25, the Blockchain Industry Center was officially established. On June 12, the Shanghai Blockchain Technology Research Center was established, which is the first Blockchain Technology Research Center established by a provincial-level government in the country. On September 6, Yangpu District released 12 policies to support the development of the Blockchain industry, with unprecedented support.

Although the previous lack of policies has caused Shanghai to lag behind in terms of blockchain startups and patent applications, the blockchain industry is still in its early stages, and Shanghai still has the opportunity to seize the blockchain transformation.

Guangzhou: Industry First, Policy Follows

Guangdong is the province in China that has introduced the most policies and plans related to Blockchain, particularly in Guangzhou and Shenzhen where the policies are especially numerous. In July 2017, Guangzhou established the Blockchain Industry Association. In October of the same year, Guangzhou set up the Blockchain Innovation Base. In December, Guangzhou issued its first policy to support the Blockchain industry.

Under the continuous favorable policies, statistics show that Guangzhou currently has 6,131 Blockchain enterprises, ranking first in the country. In May and October of this year, Guangzhou introduced new support policies, aiming to nurture 3-5 Blockchain unicorn enterprises.

With the positive interaction between industrial practice and policy support, the future development space for the blockchain industry in Guangzhou is very large.

Shenzhen: Showcasing Ambitions as a Financial Technology Hub

Shenzhen, as a national innovative city, is at the forefront of blockchain technology development. Since 2016, several government departments in Shenzhen have issued policy documents supporting blockchain technology, mainly focused on the financial sector.

Shenzhen is at the national forefront in the application of Blockchain technology in financial scenarios such as cross-border payments and electronic vouchers. The Shenzhen Taxation Bureau issued the country's first Blockchain electronic invoice in early November.

On the other hand, Shenzhen is also quite generous in terms of financial subsidies, including financial innovation awards, funding for emerging technology enterprises, and Blockchain venture capital funds.

Clear policy guidance and substantial fiscal subsidies demonstrate Shenzhen's ambition to develop Blockchain financial technology. If Shenzhen's financial technology develops, combined with the existing internet industry, it may change the ranking of first-tier cities.

Hangzhou: Policy Guidance Application-Oriented

Hangzhou is home to internet giants like Alibaba, which has laid the technical, talent, and economic advantages for the development of the Blockchain industry. There are well-known companies in various segments of the Blockchain industry chain in Hangzhou, showing a comprehensive development trend.

The Hangzhou government has paid early attention to Blockchain and has an open attitude. In April 2017, Hangzhou hosted the country's first government-sponsored Blockchain summit and launched the country's first Blockchain industrial park.

The direction guided by the policies in Hangzhou mainly focuses on utilizing existing advantages to form industrial clusters. According to reports, as of August 2018, there are already 55 companies engaged in Blockchain technology services in Hangzhou, and the ecosystem of Blockchain enterprises is becoming increasingly mature.