The launch of China’s first digital asset state-backed non-fungible token (NFT) marketplace is the latest sign of embrace for a technology that has occupied a legal gray area within the country’s notoriously strict regulations on cryptocurrency.
On the first of the new year, there will be a celebration in Beijing, the capital of the nation, to celebrate the beginning of operations at the marketplace.
According to a report published by China Daily, a state-owned media outlet in China, three different organizations—two of which are backed by the government and one of which is a private company—will be in charge of operating the platform. These organizations are China Technology Exchange, Art Exhibitions China, and Huban Digital.
In addition to being used to sell collectibles, the market, whose name literally translates to “China Digital Asset Trading Platform,” will also be used for the trading of digital copyrights and property rights.
According to the source, the blockchain that forms the basis of the platform is referred to as the “China Cultural Protection Chain.”
For the better part of the previous two years, NFTs have been rather popular among Chinese traders; but, this popularity has not taken the same form as it has elsewhere in the globe. According to the rules of China, non-financial tokens (NFTs) cannot be acquired using virtual currencies inside the nation, and the tokens themselves are not referred to as NFTs but rather as digital collectibles.
In addition, the trading of digital artwork takes place on restricted platforms that are subject to stringent regulations rather than open ones. A Chinese court declared earlier this month that digital assets had equal property rights as things sold on e-commerce platforms. This decision, which was considered as a key milestone in the protection of digital assets, was made earlier this month.