China is Getting a State-Backed NFT Marketplace on New Year’s Day
Image courtesy of 123rf.

China is Getting a State-Backed NFT Marketplace on New Year’s Day

Two government-backed entities in China and Huaban Digital Copyright Service Center are launching an NFT marketplace in the country on Jan. 1 2023.
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

China is launching a state-backed NFT marketplace with secondary trading on the first day of 2023, according to local reports. The “China Digital Asset Trading Platform” will be launched by two government-backed entities and a private firm Huaban Digital Copyright Service Center, which will allow users to register their digital assets and apply for copyright protection services.

New NFT Marketplace to Allow Users to Register Digital Assets and Apply for Copyright Protection

Chinese private firm Huaban Digital Copyright Service Center and government-backed entities are set to launch a non-fungible token (NFT) marketplace on Jan. 1, 2023, according to a report by China Daily. The two state-backed entities behind the marketplace are China Technology Exchange and Art Exhibition China.

The move comes after the new marketplace, named “China Digital Asset Trading Platform,” acquired a compliance license from the China Technology Exchange to provide NFT and digital copyrights trading services. The platform allows institutional and individual users to register their digital assets and file requests for copyright protection services.

The platform, which will also offer secondary trading services, was built on Wenbao Chain – a blockchain network managed by Art Exhibition China. CEO of Huaban Digital Copyright Service Center, Yin Tao, said the marketplace could impose specific trading rules to limit speculative activities. The marketplace aims to “regulate and avoid the excessive speculation in secondary [NFT] markets,” a person familiar with the matter said.

Join our Telegram group and never miss a breaking digital asset story.

China Remains Interested in Blockchain Despite Crypto Aversion

While NFTs have been gaining popularity in China over the past two years, cryptographic tokens haven’t witnessed as much interest as in the US and the rest of the world. Chinese traders are still not able to buy NFTs via crypto because of the country’s laws. In addition, they are not even referred to as NFTs but rather as ‘digital collectibles.’

Moreover, these collectibles are currently not traded on open platforms in China. Instead, they can be bought and sold only through closed, highly regulated marketplaces.

The launch of an NFT marketplace comes roughly a year after China banned crypto transactions and pledged to curb speculative NFT trading activities earlier this year. But despite its disapproval of crypto, the world’s second-most powerful country retained its interest in blockchain technology.

China has been one of the most active countries in the exploration of central bank digital currency (CBDC) use cases – a project extended to several major provinces. Furthermore, China has also been running and exploring various metaverse projects, such as the $7.5 billion virtual humans industry revealed in August 2022.

Finance is changing.
Learn how, with Five Minute Finance.
A weekly newsletter that covers the big trends in FinTech and Decentralized Finance.

Do you think the new marketplace could significantly drive NFT adoption in China? Let us know in the comments below.