The Chinese government is planning to launch its own NFT marketplace enabling users to trade digital collectibles. The state-sponsored China Technology Exchange, the state-owned Art Exhibitions China, and Huban Digital Copyrights Ltd, a private company, developed the marketplace. It will run on the China Cultural Security Chain network.
Here’s all you need to know about China’s first regulated NFT marketplace:
About China’s NFT marketplace
A first for China, the NFT marketplace’s name translates to “China Digital Asset Trading Platform.” Apart from facilitating digital collectibles trading, the marketplace will also allow the trade of digital copyrights and intellectual property rights. According to local news reports, the marketplace will have a launch ceremony on January 1, 2023, in Beijing.
China’s NFT marketplace will use a blockchain called the China Cultural Security Chain. However, it will use the trading instruments and settlement mechanisms of China Technology Exchange.
China and NFTs
To be sure, China has a long history with NFTs. Early this year, the country announced it would permit NFT trading, but with a catch. To explain, there are stark differences in NFT trading in China and the rest of the world.
For one, in China, NFTs are called digital collectibles. Then, residents cannot use crypto to buy NFTs. Furthermore, the artworks are traded on highly regulated platforms. Due to the country’s strict laws, companies like STEPN even banned Mainland China users.
Nonetheless, the country has been experimenting with NFTs for the last couple of months. The state-owned media company, Mango TV, for example, announced its plans to launch an NFT platform early this year. Earlier this month, a court in China recognised NFTs as virtual property protected by law. The landmark ruling compared digital collectible sales to “the “selling of digital goods through the internet.”