China is going to launch its first regulated NFT trading platform on Jan. 01, 2023. This news hyped crypto Twitter and non-fungible token enthusiasts. The Chinese market is huge and such a sudden increased exposure to investors could be beneficial for the NFT sector. Nevertheless, there is little to no information as to what regulated means for the Chinese government in terms of an NFT marketplace. So, while the crypto community is excited, none are sure what to exactly expect.
According to China Daily, the NFT marketplace will go by the name of China Digital Asset Trading Platform. This marketplace was developed by a private firm and several state-owned entities. As per reports, Huaban Digital Copyright Service Center (private firm), China Technology Exchange (state-owned), and Art Exhibition China (state-owned) will be working together to maintain the NFT marketplace.
According to Yin Tao, chief executive officer (CEO) at Huaban Digital Copyright Service Center, this marketplace has a license to offer NFTs and other digital copyright trading services. He claims that the platform obtained the license via China Technology Exchange. The report also states that both individuals and institutions can apply for copyright protection services after registering their digital assets. Additionally, this new NFT marketplace will run on the blockchain network that Art Exhibition China operates, the Wenbao Chain.
China’s Past Crypto Regulations
When it comes to crypto regulations, China is one of the most rigorous countries. Every year or so, China imposes new laws regarding cryptocurrencies, and all of them are strict. The regulation level of cryptocurrencies in China is very high. Last year in September, China banned cryptocurrency transactions throughout its territory. Moreover, its government promised that it will come for NFTs as well, claiming that they are a speculative asset.
Well, all of these “anti-crypto” decisions are concerning considering that the Chinese government itself is a Bitcoin investor. Additionally, China is one of the biggest markets when it comes to cryptocurrencies. While all of these decisions might be political, they are attracting lots of attention from the Western world.