Blockchain Policy Layout: Five Major Cities Show Their Unique Strengths

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

Beijing: Policy First, Strict Regulation

As the political and economic center of the country, Beijing has also demonstrated great potential in the technology sector. The Beijing government recognized the innovative potential of Blockchain technology early on and began policy planning in 2016, leading the nation.

In February 2016, the Zhongguancun Blockchain Industry Alliance was established, along with the Blockchain International Incubation Center. In December 2016, Beijing incorporated blockchain into the category of Internet financial technology. Thereafter, the Beijing government encouraged the research and application of innovative technologies such as blockchain in multiple plans.

However, Beijing has very strict regulations on the blockchain industry, especially in the field of cryptocurrency. In August 2018, a certain district issued a notice prohibiting any form of virtual currency promotion activities.

Beijing's policy orientation is closely related to its financial and talent advantages. In the future, blockchain technology may not only innovate in the financial sector but also make breakthroughs in regulatory technology. Some experts believe that as the headquarters for regulation in various industries, it is an inevitable trend for Beijing to use blockchain technology for regulation.

Shanghai: Following closely, striving to catch up

Although Shanghai missed the internet development dividend, it does not seem to want to fall behind in the blockchain field. In fact, Shanghai may be one of the earliest gathering places for the blockchain industry in China. In June 2011, the first domestic Bitcoin trading platform was established in Shanghai. In 2015, a blockchain laboratory held the first global summit in Shanghai, promoting the spread of the blockchain concept in China.

However, the Shanghai government's policy support started relatively late. It wasn't until 2017 that Blockchain began to appear frequently in government documents. In 2018, Shanghai started to accelerate its efforts in the Blockchain field. In May, the Blockchain Industry Center was established; in June, the country's first provincial-level Blockchain Technology Research Center was inaugurated; in September, a district released 12 support policies, with unprecedented strength.

Although starting late, the current Blockchain industry is still in its early stages, and Shanghai still has the opportunity to seize this transformative chance.

Guangzhou: Industry First, Policy Follow-Up

Guangdong is the province in China that has issued the most blockchain-related policies, with Guangzhou and Shenzhen standing out in particular. These policies mainly focus on the financial sector.

In July 2017, Guangzhou established the Blockchain Industry Association; in October, it set up the Blockchain Innovation Base; in December, it introduced the first blockchain industry support policy. Under this strategy of industry leading and policy following, Guangzhou currently has more than 6,000 blockchain enterprises, ranking first in the country.

In May 2018, a district in Guangzhou issued implementation details to put blockchain-specific policies into practice. In October, the district stated that it would introduce a new version of support policies, with the goal of nurturing 3-5 unicorn companies in blockchain or other emerging technologies.

With the continuous favorable policies, Guangzhou has a huge development space in the future, relying on the blockchain enterprises that have already gathered.

Shenzhen: Showcasing Ambitions as a Financial Technology Center

As the country's first innovative city, Shenzhen is also at the forefront of blockchain technology development. From November 2016 to April 2018, multiple government departments in Shenzhen issued documents supporting the application of blockchain technology, laying a good policy foundation for the development of inclusive finance, technology finance, and other areas.

Shenzhen's Blockchain policy is mainly issued by the financial department, demonstrating Shenzhen's determination to catch up with first-tier cities in the financial sector. Under the guidance of policies, Shenzhen is in a leading position nationwide in the application of blockchain technology in financial scenarios such as cross-border payments and electronic vouchers.

In addition, Shenzhen has also been very generous in terms of financial subsidies. In September 2017, Shenzhen launched two financial innovation awards, with a total annual prize exceeding 25 million yuan. In March 2018, Shenzhen announced a support plan, with the maximum funding amount for a single Blockchain project being 2 million yuan. In April, Shenzhen's first Blockchain venture capital fund was launched, with an initial scale of 500 million yuan.

With a clear policy direction and substantial financial support, Shenzhen is expected to make significant advancements in developing blockchain innovation in the financial sector.

Hangzhou: Policy Guidance, Application Oriented

Hangzhou has gathered a large number of excellent internet companies and technical talents, laying the foundation for the development of the Blockchain industry. In Hangzhou, there are well-known companies in every aspect of the Blockchain industry, showing a comprehensive development trend.

The Hangzhou government has been paying attention to Blockchain for some time, with an open policy attitude. In April 2017, Hangzhou hosted the country's first government-sponsored Blockchain summit and launched the country's first Blockchain industrial park. In December 2017, the Hangzhou municipal government issued guiding opinions, emphasizing the importance of Blockchain for future competition and requiring adherence to government guidance and a focus on application orientation.

Compared to other cities, Hangzhou's financial subsidies for blockchain companies are not large, and the policy focuses more on leveraging existing advantages to form industrial clusters. As of August 2018, Hangzhou has 55 blockchain technology service-related companies, and the ecosystem is becoming increasingly mature.