China is reportedly on the verge of launching a state-backed digital asset trading platform, as revealed by local media outlets. The initiative is said to be a collaboration between public and private entities.
National Market to Support Digital Collectible and Copyright Trading
Chinese news sources reported that the government is planning to launch a state-controlled platform that will enable the trading and purchase of non-fungible tokens (NFTs) and other digital assets. This is said to be a joint venture between governmental agencies, private companies, and other organizations.
The initiative is called the “China Digital Asset Trading Platform” and is being developed by the China Technology Exchange, China Cultural Relics Exchange Center, and the Huaban Digital Copyright Service Center Co. Limited. It is scheduled to roll out on April 1, 2023, according to the Sina Finance report.
The exchange will be managed under the license of the China Digital Exchange, which is a branch of the Ministry of Science and Technology, the State Intellectual Property Office, the Chinese Academy of Sciences, and the Beijing municipal government.
The platform is expected to provide services for the trading and purchase of digital copyrights and digital collectibles. Huaban president Yin Tao noted that, as China has been implementing restrictions on cryptocurrency-related activities, the term “digital collectibles” is preferred over “NFTs” to avoid associations with crypto.
In terms of regulation, the market is subject to some uncertainty and increased compliance risks, but authorities are said to be gradually improving laws pertaining to the sector. Yu Jianing, co-chairman of the Blockchain Committee of the China Communications Industry Association, commented on the matter.
In July 2020, the Chinese government prohibited the resale and transfer of digital collectibles, reportedly to prevent market speculation on these assets. This decision led to Tencent closing down its NFT platform, Huanhe, and the Tencent News app stopping the sale of NFTs soon after.
In June 2021, WeChat, the most popular social media app in China and operated by the same tech giant, announced that it will ban public accounts facilitating the secondary trading of non-fungible tokens.
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