As a secondary market for NFTs and digital asset copyrights, the platform will be backed by the state.
China will launch its first regulated trading platform for nonfungible tokens (NFTs) on Jan 1, 2023, according to a report published by local news outlet Sina News on Dec 28. A secondary market has been created for the exchange of NFTs by the government-owned Chinese Technology Exchange, Art Exhibitions China, and a private company, Huban Digital Copyrights Ltd.
In addition to NFTs, the platform will facilitate the trade of copyrights related to digital assets. According to someone familiar with the project, it aims to “regulate and avoid excessive speculation in secondary [NFT] markets.” An expert on digital assets and metaverse developments in China, Yu Jianing, commented in an interview:
“Digitized assets represent a new form of commerce in terms of industry supervision and regulation, and many laws, regulations, and supervisory policies need to be refined. The situation is therefore uncertain. Platforms are responsible for listing and trading digital assets. Digital assets face a greater risk of regulatory soundness than intellectual property rights and digital copyrights.”
China’s Hangzhou Internet Court, which specializes in internet-related legal disputes, ruled previously on Nov. 29 that NFTs are virtual property protected by law and that they “have the object characteristics of property rights such as value, scarcity, controllability, and traceability.” Although the possession of cryptos is recognized as virtual property protected by law, cryptocurrency exchanges have been banned in China since 2021.