Key takeaways:
- China is going to open its first market for non-fungible tokens (NFT).
- This is the most recent instance of a technology being adopted despite the nation’s notoriously stringent cryptocurrency restrictions, which fall into a murky area.
China is introducing its first national platform for trading digital assets as it returns to the NFT market after announcing a blanket prohibition earlier this year. On January 1st, 2023, a launch ceremony for the platform will be held in Beijing.
The government-backed China Technology Exchange and China Cultural Relics Exchange Center, along with the Huaban Digital Copyright Service Center, a private company, operate the China Digital Assets Exchange, which is intended to be functional on a nationwide level.
The China Digital Assets Exchange, a new platform that will be built on a blockchain called “China Cultural Protection Chain,” will enable the trade of digital collections, digital copyrights, and property rights.
The Ministry of Science and Technology, the State Intellectual Property Office, the Chinese Academy of Sciences, and the Beijing Municipal People’s Government jointly established the China Technology Exchange, a national institution for trading intellectual property and property rights relating to scientific and technological achievements.
NFTs are considered to be virtual property under Chinese law, according to a ruling from the Hangzhou Internet Court in November, because they exhibit “object features of property rights such as valuation, rarity, controllability, and tradeability.
NFTs are widely used in China, however there they are traded on closed, heavily regulated platforms rather than open ones. They cannot also be purchased with cryptocurrency.
Additionally, the site has partnered with “Digital Collection Home,” the first credit evaluation and aggregation platform for metaverse digital collections in China created by Zhongrong Global Holdings Co.
Users of the platform will purportedly have access to the metaverse and data, content, and other aggregation services owing to this collaboration.
In addition, the “platform” uses the “China Cultural Protection Chain” as the only reliable depository service platform for tradable digital assets, offering institutions and individual users services for digital asset registration, rights confirmation, depository, rights protection monitoring, and copyright protection.
