The People’s Republic of China prepares to launch its first state-backed non-fungible token (NFT) marketplace in the nation’s capital, Beijing, on New Year’s Day. This signals its continued embrace of the technology.
China to Launch State-Backed NFT Marketplace
The state-backed marketplace, dubbed “China Digital Asset Trading Platform,” will be launched in Beijing on January 1st, 2023. The regulated platform will be a secondary market allowing users to trade digital copyrights, property rights, and collectibles.
According to a report from Sina News, the NFT platform will be run by the state-owned Chinese technology exchange in collaboration with the state-owned Art Exhibitions China and Huban Digital Copyrights Ltd, a private corporate entity.
The platform is reportedly built on a blockchain called the “China Cultural Protection Chain,” a permission chain, unlike the permissionless chains of traditional NFTs. The stiff regulation limits the nature of digital artwork created on the blockchains.
China Leads the Way in NFT Adoption
China emerged as one of the first nations to embrace the NFT industry. This is despite banning cryptocurrencies, mining, and exchanges in 2021. As a result, NFTs (digital collectibles in China) have become extremely popular over the last two years.
In November, the Hangzhou Internet Court of China ruled that NFTs are virtual property protected by law because they share “the object characteristics of property rights such as value, scarcity, controllability, and tradeability.”
On the Flipside
- While NFTs are popular in China, they are traded on closed, highly regulated platforms instead of open ones. Additionally, they can’t be bought with crypto.
Why You Should Care
China’s NFT marketplace aims to regulate while also avoiding excessive speculation in secondary NFT markets.
Sun’s take on China’s crypto approach is covered in:
Tron’s Justin calls Hong Kong China’s Crypto Policy Experiment Base
Read about China’s leading CBDC in:
China’s Central Bank-Owned ‘Digital Yuan’ App Now Allows Gifting of Cash