Despite Crypto Ban, China Insists on Enhancing NFTs and DApps

China, despite its ban on cryptocurrency, is signaling a keen interest in developing non-fungible tokens (NFTs) and decentralized applications (DApps) as part of its broader blockchain technology integration plan.

The Ministry of Industry and Information Technology released a document on Tuesday, outlining intentions to pave the path for Web3 development, focusing on governance, industry, and innovative business models like NFTs and DApps.

This proactive approach by the central government, responding to inquiries from key political bodies, emphasizes the encouragement for exploring these new paradigms in digital spaces. The document intends to establish a strategic direction for Web3, highlighting initiatives like distributed digital identity pilots to facilitate authentication and management.

China's pivot towards Web3 comes on the heels of several local governments pledging support for the metaverse industry earlier this year. Notably, Sichuan province, once a crypto mining hub, announced ambitions to grow its metaverse industry substantially by 2025, signaling a shift in focus post-crypto ban.