China will launch its first regulated platform that will serve as a secondary market for NFT and digital asset copyrights.
According to a report from the local news source Sina News that was released on December 28, China will launch its first regulated platform for trading nonfungible tokens (NFT) on January 1, 2023.
The state-owned Chinese Technology Trade, the state-owned Art Exhibitions China, and the privately-owned Huban Digital Copyrights Ltd. formed the organization, which serves as a secondary market for the exchange of NFTs.
The platform will make it easier to trade copyrights for digital assets in addition to NFTs. According to a source with knowledge of the project, it intends to “control and avoid the excessive speculation in secondary [NFT] marketplaces.” Yu Jianing, a well-known authority on Chinese advancements in digital assets and the metaverse, said in an interview:
“In terms of industry supervision and regulation, digital assets represent a new form of commerce, and much regarding laws, regulations and supervisory policies remains to be refined. Therefore, a deal of uncertainty exists. Platforms have a clear responsibility for the listing and trading of digital assets. Relative to intellectual property rights and digital copyrights, digital assets face a greater risk of regulatory soundness.”
NFTs are considered to be virtual property that is legally protected by law and to “have the object characteristics of property rights such as value, scarcity, controllability, and tradeability, according to a previous ruling by China’s Hangzhou Internet Court on November 29.
Since 2021, cryptocurrency exchanges have been prohibited in China, despite the fact that crypto ownership is regarded as virtual property that is protected by the law.
