On January 1, 2023, China will introduce the China Digital Asset Trading Platform, which will be a regulated marketplace for trading non-fungible trading tokens (NFTs).
According to local media outlet Sina News, the platform was established to enable the trade of NFTs as a secondary market by the state-owned Chinese Technology Exchange, the state-owned Art Exhibitions China, and Huban Digital Copyrights Ltd, a private business organization. The Platform will also provide institutions and individuals services for copyright protection and rights monitoring with regard to digital assets.
Yu Jianing, an expert in digital assets and Chinese metaverse space, claims that the establishment of the China Digital Assets Exchange marks an acceleration of the country’s cultural industry’s digital transition. Jianing believes the “China Digital Asset Trading Platform” draws on the characteristics of a national-level exchange of the China Technology Exchange, performs trading duties on behalf of the exchange, and develops a thorough trading system, a standardized trading system, and a scientific trading system for the digital asset trading industry.
In recent years, the market for NFTs in China has expanded dramatically, with numerous high-profile transactions occurring on different platforms. However, the absence of a centralized market has hindered buyers and sellers from swiftly finding and exchanging NFTs. There have also been questions regarding the legitimacy and ownership of some NFTs.
In order to overcome these problems, since 2021, cryptocurrency exchanges have been prohibited in China, though crypto ownership is regarded as virtual property that is protected by the law. In the same year, the Chinese government declared it was creating a national NFT platform. The marketplace aims to offer a centralized platform for buying and selling NFTs as well as a means of effectively regulating the NFT market and safeguarding the rights of producers and users.
The Hangzhou Internet Court, which specializes in internet-related legal matters, ruled on November 29 that digital assets like NFTs are virtual properties that are legally protected and that they possess the qualities of property rights, such as value, scarcity, controllability, and tradeability. Prior to this, the Chinese central bank unveiled its intentions for the CBDC and made trial versions of mobile applications for digital yuan wallets available.