Comparison and Analysis of Blockchain Policy Layouts in Five Major Cities

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. Based on their geographical advantages, local governments have successively 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 also shows vigorous vitality in the field of technology. The Beijing government began to pay attention to the development potential of Blockchain technology as early as 2016, making relevant policy arrangements and taking a leading position in the country.

In February 2016, the Zhongguancun Blockchain Industry Alliance was established, along with the Blockchain International Incubation Center. In December 2016, Beijing included Blockchain in the category of Internet Financial Technology. Since then, various technological financial innovation plans have encouraged the exploration of research and application of innovative technologies such as Blockchain.

In 2018, Beijing released a financial technology development plan that included Blockchain and called for the promotion of the development of underlying technologies, including distributed technology.

But Beijing's regulation of the blockchain industry, especially cryptocurrencies, is very strict. In August 2018, it required shopping malls, office buildings, etc. not to hold any form of virtual currency promotion activities.

The policy direction of Beijing is closely related to its financial and talent advantages. In the future, Blockchain may have breakthroughs in financial innovation and regulatory technology. Some experts believe that regulatory agencies concentrated in Beijing will inevitably adopt blockchain technology for regulation.

Shanghai: Catching Up with Blockchain Development

Although Shanghai missed the internet development dividend, it has shown a positive attitude in the Blockchain field. In fact, Shanghai is one of the earliest hubs of the Chinese Blockchain industry. In June 2011, China's first Bitcoin trading platform, BTCC, was established in Shanghai. In 2015, the first Blockchain Global Summit was held in Shanghai, promoting the dissemination of Blockchain concepts in the country.

However, the policy support from the Shanghai government has been somewhat lagging. It wasn't until 2017 that Blockchain began to appear frequently in government documents. In 2018, Shanghai started to catch up in the field of Blockchain. In May, the Blockchain Industry Center was established; in June, the Shanghai Blockchain Technology Research Center was inaugurated, which is the first provincial-level government-registered Blockchain technology research center in the country; in September, the "Several Policy Regulations for Promoting the Development of the Blockchain Industry in Yangpu District" were introduced, providing 12 policy supports.

Although the initial lack of policy has caused Shanghai to lag behind in terms of blockchain startups, patent applications, and other aspects, the blockchain industry is still in its early stages, and Shanghai still has the opportunity to seize this transformative chance.

Guangzhou: Industry First, Policy Follows

Guangdong is the province in the country with the most blockchain-related policy plans, among which Guangzhou and Shenzhen are particularly prominent. Currently, these policies are mainly focused on the financial sector.

In July 2017, Guangzhou established the Blockchain Industry Association; in October, it established the Blockchain Innovation Base; in December, it introduced the first blockchain industry support policy, covering various rewards and support measures.

With policy support, Guangzhou currently has 6,131 Blockchain companies, ranking first in the country. In May 2018, Guangzhou further issued implementation rules to put Blockchain special policies into practice. In October, the Guangzhou Development Zone announced that it would launch a new version of the "Blockchain 10 Articles" policy, aiming to create 3-5 Blockchain unicorn companies.

With the continued favorable policies, Guangzhou, relying on the blockchain enterprises it has gathered, has enormous potential for future development.

Shenzhen: Ambitions of a Financial Technology Center

As a national innovative city, Shenzhen has already taken the lead in fields such as smart hardware and biological sciences. In the face of the rapid development of Blockchain technology, Shenzhen is also at the forefront.

From 2016 to 2018, several government departments in Shenzhen issued documents supporting Blockchain technology, laying a policy foundation for the development of inclusive finance and technology finance. In terms of the issuing units of the policies, Shenzhen's Blockchain policies are mainly released by the financial office, demonstrating Shenzhen's determination to catch up with Beijing and Shanghai in the financial sector.

Under the guidance of policies, Shenzhen is at the national leading position in the application of Blockchain technology in financial scenarios such as cross-border payments and electronic certificates. Shenzhen has also invested heavily in fiscal subsidies, including various financial supports such as financial innovation awards and venture capital funds.

Clear policy direction and substantial financial subsidies make Shenzhen's blockchain innovation in the financial sector highly anticipated. If financial technology develops and is combined with the existing internet industry, Shenzhen is expected to stand out among first-tier cities.

Hangzhou: Policy Guidance, Application-Oriented

Driven by Alibaba, Hangzhou has gathered a large number of internet enterprises and talents, laying the foundation for the development of Blockchain. Hangzhou has well-known enterprises in all aspects of the Blockchain industry, showing a comprehensive development trend.

The Hangzhou government mentioned Blockchain in its policies earlier and has an open attitude. In April 2017, Hangzhou hosted the first government-sponsored Blockchain summit and launched the country's first Blockchain industrial park. In December 2017, the Hangzhou municipal government issued guidance, emphasizing the importance of Blockchain for future competition and calling for a focus on application orientation.

Hangzhou's policy mainly guides the utilization of existing advantages to form industrial clusters, with the scale of financial subsidies being less than that of other cities. However, leveraging its internet infrastructure, Hangzhou has developed an attraction for technological innovation. As of August 2018, there were 55 enterprises related to Blockchain technology services in Hangzhou, and the ecosystem is becoming increasingly mature.