Chinese government will introduce its version of a “NFT” market

The Chinese government has made plans to introduce its own version of a “non-fungible token (NFT)” market that is supported by the government. Beijing’s platform won’t be powered by blockchain, though. Additionally, it seeks to replace cryptocurrency with cash as the primary form of payment in the market.

The Hangzhou Internet Court decided last month that virtual objects like NFTs can be regarded as property under the law. Beijing will soon launch the China Digital Asset Trading Platform, according to the China Daily (literal translation).

According to the government, the platform will launch on January 1. Official “secondary market for digital assets that meet with national norms,” according to Beijing, will be established. Cryptocurrency trading is practically prohibited in China.

And as a result, traditional NFT trading in the country has become all but impossible. NFTs are created elsewhere on blockchain networks, where they may be exchanged for other tokens like ethereum (ETH).

However, despite its determination to ban all cryptoassets, China intends to pick and choose which technical developments are related to cryptocurrencies and the blockchain industry. NFTs and private blockchain networks are included in this image.

China’s View on NFTs: “Digital Collectibles”

Instead of using the term “NFTs,” Chinese businesses have been urged to refer to their goods as “digital collectibles.” Trading on the secondary market has also been restricted in an effort to cut down on “speculation” about NFT prices.

Although there are private sector secondary markets in China for “digital collectibles,” the fiat yuan is also accepted there instead of cryptoassets. Instead than on a public blockchain, market transactions are recorded on “centralized ledgers.”

Significant IT firms like Alibaba and Tencent have already released their own crypto-free NFT products. Additionally, they run their own (strictly controlled) markets.

But Beijing will make its own entrance onto the scene via the China Digital Asset Trading Platform.

The platform would be in charge of “implementing” Chinese efforts to “digitize culture” and “promote cultural projects and businesses through technological aid and innovation,” the government stated.

The state-owned China Technology Exchange, a group that oversees IT-related issues and intellectual property rights, will manage the platform. The China Cultural Relics Exchange Center will also take part in the initiative. This institution handles issues pertaining to Chinese culture.

Additionally, a private Beijing-based company that conducts business in “digital treasures” and intellectual property has been enlisted to assist in managing the site.

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