China is Set to Launch its First State-Based NFT Marketplace

China is Set to Launch its First State-Based NFT Marketplace

In the platform, the Chinese will be able to trade digital collectables, digital copyrights and property rights.

China is looking to launch its first state-based and regulated non-fungible token (NFT) marketplace, dubbed China Digital Asset Trading Platform.

According to the report shared by the local media portal Sina News, the marketplace is set to see daylight on January 1st, 2023.

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In its report, Sina News revealed that the China Digital Asset Trading Platform is expected to function as a secondary trading platform. It is worth noting that in a secondary market, digital assets or securities are bought and sold between investors.

The China Digital Asset Trading Platform was created by two state-owned institutions, Chinese Technology Exchange and Art Exhibitions China, as well as one private corporate firm Huban Digital Copyrights Ltd. According to Sina News, the platform is based on its blockchain, the “China Cultural Protection Chain.”

Moreover, apart from non-fungible tokens (NFTs), investors will be able to use the platform to trade or purchase digital copyrights and property rights.

The person familiar with the matter revealed that China’s NFT marketplace was created to “regulate and avoid the excessive speculation in secondary markets.”

The expert on digital assets and metaverse developments in China, Yu Jianing, claimed that the launch of the state-based NFT marketplace “represents the acceleration of the digital transformation process” in China.

Nevertheless, Jianing revealed that the issuance of digital assets in China faces many problems, such as collection value, technical limitations and copyright disputes. Moreover, Yu Jianing added:

In terms of industry supervision and regulation, digital assets represent a new form of commerce, and much regarding laws, regulations and supervisory policies remain to be refined. Therefore, a deal of uncertainty exists.

It is worth noting that according to Chinese laws, investors cannot purchase NFT using cryptocurrencies. On top of that, in the country, non-fungible tokens are referred to as digital collectables, which are traded on closed, highly regulated platforms.

Gile K. - Crypto Analyst

by Gile K. – Crypto Analyst, BitDegree

Compiled by Metacrunch. Metacrunch is a news complier and aggregator platform which aims to spread awareness and updates on Metaverse, Web 3.0 Technology, Blockchain, Cryptocurrency, NFTs, Airdrops and many more.

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