China, which is notorious for its severely restrictive stance towards the cryptocurrency industry, is taking baby moves toward researching the digital assets industry.
China is preparing to build an official, state-backed NFT marketplace, which would allow Chinese NFT traders to dabble in the space under government supervision.
China’s NFT Marketplace
The inauguration of this marketplace is scheduled for January 1. It will be hosted in Beijing, China’s capital, at a time when the country is once again plagued by the COVID-19 crisis.
The program, dubbed the China Digital Asset Trading Platform, aims to provide a secure ecosystem for the secondary sales of NFTs, which, if not supervised, might expose buyers to the risk of hacking and fraud.
China’s Sina News reported that three state-owned firms China Technology Exchange, China Cultural Relics Exchange Center, and Huaban Digital Copyright Service Center Co., Ltd. built this NFT trading platform in accordance with China’s rules and regulations.
Read more: Coinbase Accuses Apple of Blocking NFT Transfers from Its iOS Wallet
Cryptocurrency in China
Non-fungible tokens, also known as NFTs, have recently experienced a meteoric rise in popularity among Chinese citizens, and marketing initiatives employing these digital assets have become more prevalent in China.
A court in Hangzhou, China, declared on December 10 that NFTs are a sort of online virtual property that is entitled to legal protection in the Asian nation.
The court connected the buying and selling of digital things over the internet with the concept of virtual property and included digital collectibles in this category.
Following the categorization, the court determined that the jurisdictional rules governing e-commerce would apply to non-financial transfers.
This established a precedent for how the Chinese legal system will approach NFTs in the future. China has outlawed cryptocurrency exchanges despite the fact that bitcoin itself is recognized as a kind of virtual property that is protected by the law.
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