Web3 startups in mainland China are navigating strict regulatory constraints that prohibit token issuance, trading, fundraising, and investment promotion. These companies are focusing on blockchain infrastructure, non-financial digital assets, compliance services, and offshore models with local technical support to remain compliant. The regulatory landscape in China contrasts with the EU's Markets in Crypto-Assets Regulation, which offers a different approach to managing liquidity and crypto markets. Chinese startups are advised to clearly separate technical and financial activities to adhere to domestic rules, while global interest in liquidity and crypto markets continues to grow.