China plans to launch First National NFT marketplace in 2023
Chinese authorities plan to launch their first state-controlled platform that will let customers trade non-fungible tokens (NFTs) and other digital assets. The project aims to regulate excessive speculation in secondary NFT markets.
This step is the most recent indication of the country's adoption of a technology that has existed in the legal gray area under the nation's notoriously harsh cryptocurrency restrictions and regulations.
The project is the result of a collaboration that took between a public agency and a commercial business. The "China Digital Asset Trading Platform," serves as a secondary market for the exchange of NFTs, was created in collaboration with the China Technology Exchange, China Cultural Relics Exchange Center, and Huban Digital Copyright Service Center Co. Limited, will be launched in 2023. The marketplace will be utilized to trade collectibles as well as digital copyrights and property rights along with NFTs. The platform's underlying blockchain is known as "China Cultural Protection Chain."
In China, the exchange makes it easier to buy and sell intellectual, scientific, and technological property rights. It will supply the foundational framework for the new trading platform, handling the processing of transactions and putting in place settlement procedures.
Under the license of the China Digital Exchange, which is set up by the Ministry of Science and Technology, the State Intellectual Property Office, and the Chinese Academy of Sciences, the market will operate. As per the report, the platform would be managed by three state-owned and commercial organizations, including Huban Digital and China Technology Exchange, both of which are privately held.
Very soon, a ceremony honoring the marketplace's launch will take place in Beijing. Trade in digital collectibles and digital copyrights will be possible in the new marketplace, which will comply with applicable regulations.
The laws of China prohibit the use of cryptocurrencies to pay for NFTs, which are instead referred to as "digital collectibles." In addition, closed, strictly regulated platforms are used for the trading of digital artwork. A significant step forward in the protection of digital assets was made earlier this month when a Chinese court decided that they share identical property rights with goods sold on e-commerce websites.
Wechat, a well-known social media platform run by the same Chinese internet company, declared in June that it intended to forbid public accounts from supporting the secondary trading of non-fungible tokens. The Tencent News app ceased selling NFTs shortly after that.
CBW - External Analyst