China is opening the first state-backed NFT market. This is the latest indication that the country is embracing a technology that continues to exist in limbo under its harsh restrictions on cryptocurrency.
China Will Open Its Own National Digital Asset Market
According to the Chinese state media outlet China Daily, the platform will be managed by three state-owned and private organizations, including China Technology Exchange, Huban Digital, and Art Exhibitions China.
The marketplace, called “China Digital Asset Trading Platform“, will be used for collection trading as well as digital copyrights and property rights. According to the news, the blockchain underlying the platform is known as the “China Cultural Protection Chain“.
Relations Between NTF and China
NFTs have been popular with Chinese traders for most of the last two years, although not in the same ways as the rest of the world. However, Chinese law prohibits the purchase of cryptocurrencies for NFTs, in addition to calling them digital collectibles instead of NFTs.
In addition, closed and strictly regulated platforms are used for the trade of digital works of art instead of open platforms. However, an important step was taken in the protection of digital assets when a Chinese court ruled in early December that digital assets have the same ownership rights as products sold on e-commerce sites.