China Softens Its Stance On Crypto – Launches First State-backed NFT Marketplace
China is beginning to soften its previous stance against the crypto sector. The government has announced a ready plan to launch a new state-backed marketplace for non-fungible tokens and digital assets copyrights.
China To Launch NFT Marketplace Next Week
According to reports published by local news outlet Sina News on December 28, the Chinese government will launch its first regulated market platform for non-fungible tokens and other digital assets next week.
The Chinese government has partnered with the Chinese Technology Exchange, Art Exhibition China, and Huban Digital Copyrights Ltd to launch the new market platform. The marketplace will act as a secondary market for the exchange of NFTs.
Moreover, the new NFT marketplace will allow users to trade copyrights related to digital assets. According to the Chinese government, the NFT project aims to regulate and mitigate excessive speculation in the secondary NFT market.
While commenting about the new state-backed NFT market platform in a recent short exclusive interview, Yu Jiannig, a leading expert on digital assets and metaverse development in China, remarked:
“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.”
Chinese Gov’t Softens Its Stance On Crypto
The Chinese government has been adamant against cryptocurrencies and their related assets in the past few years. In 2021, the government even prohibited trading cryptocurrencies and their associated assets within its jurisdiction.
But in recent weeks, the country has begun changing its stance on crypto assets, with the court recently describing NFTs as virtual property protected by law. The court ruled that NFTs have the object characteristics of property rights such as value, scarcity, controllability, and tradeability.