Sugar The government has announced plans to launch its own version of a state-backed “non-fungible token”.nft)” Market. But Beijing won’t be using blockchain to power its platform. And it wants to do away with crypto as a market currency – in favor of fiat.
Last month, the Hangzhou Internet Court ruled that virtual items such as NFTs can be legally recognized as property. and now, China Daily Reportedly, Beijing will launch the China Digital Assets Trading Platform (literal translation).
The government says the platform will go live on January 1. Beijing says it will become an official “secondary market for digital assets that adheres to national regulations.” China has effectively banned crypto trading.
And this means that traditional NFT trading has become almost impossible in the country. In the rest of the world, NFTs are minted on the blockchain network, where they can be traded for tokens such as Ethereum (ETH),
But while the Chinese government is determined to crack down on all cryptocurrencies, it wants Cherry-pick tech developments involving the crypto and blockchain space, Private blockchain networks and NFTs are only part of this picture.
‘Digital collectibles’ – China’s stance on NFTs
Chinese companies have been encouraged to label their products as “digital collectibles” instead of NFT. Limits have also been placed on secondary market trading to reduce “speculation” on NFT prices.
Although private sector secondary markets for “digital collectibles” exist in China, fiat yuan is also used in place of cryptocurrency in these locations. Marketplace transactions are recorded on a “centralized ledger rather than a public blockchain”.
Major tech companies such as Alibaba and Tencent have already launched their own crypto-free NFT offerings. They also operate their own (highly regulated) markets.
But the China digital asset trading platform will mark Beijing’s own debut on the scene.
The platform, the government indicated, would be tasked with “implementing” Chinese efforts to “digitize culture” and “develop cultural projects and industries through technical support and innovation”.
The operator of the platform will be the state-run China Technology Exchange, a body that regulates intellectual property rights and IT-related matters. There will also be a China Cultural Relic Exchange Center participating in the project. This organization deals with matters related to Chinese culture.
A private, Beijing-based company that deals with intellectual property and “digital collectibles” transactions has also been recruited to help run the platform.
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