Web3 Entrepreneurship in Mainland China: What Can and Cannot Be Done?
Summary: Under China's current legal and regulatory framework, Web3 entrepreneurship is possible but must avoid activities related to issuing tokens, speculative trading, fundraising, or operating exchanges. The article outlines four viable paths:
1. **Pure Technology & Infrastructure**: Developing blockchain as a distributed database or collaborative tool for enterprises and governments, focusing on data verification, supply chain coordination, and judicial record-keeping without financial incentives.
2. **De-Financialized Digital Assets**: Creating non-fungible tokens (NFTs) as digital collectibles, membership passes, or copyright certificates—emphasizing utility over investment value and avoiding secondary market trading.
3. **Compliance & Risk Management Services**: Providing legal, regulatory, and analytical support for Web3 projects, including anti-money laundering measures and chain monitoring, which are increasingly essential as regulations evolve.
4. **Overseas-Centric Operations with Domestic Support**: Structuring projects so that technical development, research, and backend services are handled in mainland China, while financial aspects (e.g., token issuance, trading) are managed by compliant entities abroad.
The author stresses that success depends on treating Web3 as a tool rather than a financial instrument, avoiding public promotions of crypto investments, and ensuring clear legal boundaries to sustain long-term operations.
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