China launches state-owned NFT marketplace
China has launched the first state-backed platform for trading digital assets, despite its tense relationship with cryptocurrencies. It is a state-controlled NFT marketplace that meets national standards.
China is one of the countries that officially banned digital currencies in 2021. The authorities continue to "morally destroy" cryptocurrencies. They link cryptocurrencies closely to the local illegal drug trade and organize a “massacre” on the Internet with mass blocking of related websites and social media accounts.
It is not surprising that the news of the state-owned NFT marketplace's launch sparked a lot of interest. The China Digital Asset Trading Platform was launched on January 1, 2023, according to local media outlet sina.com.cn. The official opening of the secondary trading platform took place in Beijing. The creators of the marketplace are the China Technology Exchange, the China Center for the Exchange of Cultural Relics, and the private corporation Huban Digital Copyrights Ltd.
“The precise trade commodities and trading regulations are still currently being studied and discussed. For example, there are constraints on the timing and price of transaction delivery, and the excessive hype that is present in the secondary market may be prevented by developing standardized trading methods and standards,” said Yin Tao, president of Huban Digital Copyrights Ltd.
The state-owned marketplace is designed not only for the exchange of NFTs but also for the trading of digital copyrights. One of the main tasks set by the creators is the fight against speculation in the secondary markets.
The launch of the platform represents an acceleration in the cultural industry’s digital transformation in China, according to Yu Jianing, co-chairman of the Special Blockchain Committee of the China Communications Industry Association. It is expected to help address major industry issues such as copyright disputes, collection valuation, and technical limitations.
Despite the categorical attitude towards cryptocurrencies, at the end of November, a ruling by the Hangzhou Internet Court established the precedent that NFTs constitute online virtual property and shall be recognized under the current E-Commerce Law. The judges reached this conclusion after considering objective characteristics of property rights such as value, scarcity, controllability, and tradability.
