A marketplace for digital assets is soon going to open in China under a public-private partnership, local media revealed. According to the report, the goal is to establish a regulated trading platform for digital collectibles as part of government efforts to curb market speculation with such assets.
National Marketplace to Support Trading of Digital Collectibles and Copyrights in China
Chinese authorities are preparing to launch a state-controlled platform allowing the trading of non-fungible tokens (NFTs) and other digital assets, local media announced. The initiative is a joint project between government organizations and a private company.
The “China Digital Asset Trading Platform,” built in partnership by the China Technology Exchange, China Cultural Relics Exchange Center, and Huaban Digital Copyright Service Center Co. Limited, will launch on Jan. 1, 2023, the report by Sina Finance detailed on Wednesday.
The marketplace will operate under the license of the China Digital Exchange, set up by the Ministry of Science and Technology, the State Intellectual Property Office, the Chinese Academy of Sciences, and the Beijing municipal government.
The exchange facilitates purchase and sale of intellectual, scientific, and technological property rights in the People’s Republic. It will provide the underlying infrastructure for the new trading platform, taking responsibility for processing transactions and implementing settlement mechanisms.
The new marketplace will be compliant with applicable regulations and provide trading services for digital collectibles and digital copyrights, Huaban President Yin Tao explained. As China has been cracking down on crypto-related activities, the term “digital collectibles” is often preferred by media outlets and companies over “NFTs” to avoid association with cryptocurrencies.
In terms of supervision and compliance, this market faces some uncertainties and greater compliance risks, but laws and regulatory policies will be gradually improved, commented Yu Jianing, co-chair of the Blockchain Committee of the China Communications Industry Association.
A ban on the resale of digital collectibles imposed by Chinese regulators to limit market speculation with these assets was reportedly the reason behind Tencent’s decision to close down its NFT platform, Huanhe. The news of the move came out in July, only a year after its launch.
In June, the popular social media app Wechat, also operated by the Chinese tech giant, announced its intentions to prohibit public accounts facilitating secondary trading of non-fungible tokens. Soon after, the Tencent News app stopped selling NFTs.
Do you think China will eventually expand the opportunities for regulated digital asset trading beyond NFTs? Tell us in the comments section below.