China is making a concerted effort to really get to grips with the Cryptocurrency industry. The government is leading the charge on development projects for Blockchain.
Already this week we have seen the Chinese State Council making big asks from the country on Blockchain development. The request was initially sent out to local authorities at the beginning of May and laid down the law telling said authorities that they needed to up their game in terms of developing Blockchain technology. This is all part of the drive for the Guangdong Pilot Free-Trade Zone. This designated area merges with Hong Kong and Macau and China. At present, there is reportedly 71 Blockchain starts up in this area.
This request above is actually the first time that the Chinese State Council has stepped in and proves just how important Blockchain and the digital economy is seen by the Chinese Government now.
Blockchain Industrial Park
The tide is definitely turning in China now with millions of dollars being given out in subsidies to attract talented individuals and startups to the new Blockchain Industrial Park in Hangzhou. This Eastern city in China saw the new park open last month. The Blockchain Investment Park has two main roles: to attract and develop talented individuals; to be an incubator for startups.
The park was part of the $1.6 billion Xiong’An Global Blockchain Innovation Fund that had 30% of the funds contributed from the Hangzhou city government. The fund itself was actually launched by Tunlan Investment – a venture capital company who are based in Hangzhou. The money is being ring-fenced for Blockchain specific projects only. Two highly respected and very experienced Chinese financial professionals will advise on the fund and manage the fund.
Background On Subsidies
The Xiong’An Global Blockchain Innovation Fund revealed the new subsidy initiative this week via its official WeChat account. The new policy obviously is still work in progress so there are likely to be a few amendments over the coming months as new information comes to light.
In essence, however, the Xiong’An Global Blockchain Innovation Fund is looking to offer approximately $490,000 in subsidized grants for talented individuals. These grants are set up to find people with excellent skills in the Blockchain technology. Obviously prospective recipients need to meet certain criteria to receive the grants. These details have yet to be released.
Moreover, there are grants available to support start-ups based in the Blockchain Industrial Park. These grants are separated out into four categories, with two of those listed below:
• Early stage startups – A maximum of $230,000 for housing; $1 million as research and development funding
• More mature Blockchain startups – A maximum of $480,000 for housing; $780,000 for research and development funding
Further and more comprehensive information on the selection criteria and application processes, for instance, does need to follow over the coming months. However, this is a very large and important step forward for the industry as a whole and sees the beginning of the east developing its talent. Something that the west already is in full swing with.