Chinese authorities are preparing to launch a state-controlled platform that allows the trading of non-fungible tokens (NFTs) and other digital assets, local media reported. The initiative is a joint project of state organizations and a private company
“China Digital Assets Trading Platform”, established in cooperation with China Technology Exchange, China Cultural Relics Exchange Center and Huaban Digital Copyright Service Center Co. Limited will launch on January 1, 2023, Sina Finance said in a report.
The marketplace will operate under the China Digital Exchange license established by the Ministry of Science and Technology, the State Intellectual Property Office, the Chinese Academy of Sciences and the Beijing Municipal Government.
The exchange facilitates the purchase and sale of intellectual, scientific and technological property rights in the PRC. It will provide the basic infrastructure for the new trading platform, taking responsibility for transaction processing and implementation of settlement mechanisms.
The new marketplace will comply with applicable regulations and provide digital collectibles and digital copyright trading services, Huaban President Yin Tao explained. Since China has tightened up crypto-related activities, the media and companies often prefer the term “digital collectibles” over “NFT” to avoid association with cryptocurrencies.
In terms of oversight and compliance, this market faces some uncertainty and increased compliance risks, but laws and regulatory policies will gradually improve,” commented Yu Jiangying, co-chair of the China Communications Industry Association Blockchain Committee.
The ban on the resale of digital collectibles, imposed by Chinese regulators to curb market speculation in these assets, is reported to be the reason for Tencent’s decision to shut down its Huanhe NFT platform. News of the move broke in July, just a year after it launched.
In June, popular social media app Wechat, also run by the Chinese tech giant, announced its intentions to ban public accounts that facilitate the secondary trading of non-fungible tokens. Shortly thereafter, the Tencent News app stopped selling NFTs.
Subscribe to the channel CryptoNewsHerald.com in Telegram — always fresh news and market overview
