China will launch its first regulated platform for nonfungible token (NFT) trading on January 1st, 2023, according to a report from local news source Sina News that was published on December 28, Cointelegraph reported.
The state-owned Chinese Technology Exchange, the state-owned Art Exhibitions China, and the privately-owned Huban Digital Copyrights Ltd. formed the organisation, which serves as a secondary market for the exchange of NFTs.
Yu Jianing, an expert on digital assets and metaverse developments in China, in an interview, noted, “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.”
Cointelegraph further noted that NFTs are considered to be virtual property that is legally protected and that “have the object characteristics of property rights such as value, scarcity, controllability, and tradeability,” according to a previous decision 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 recognised as virtual property that is protected by the law.
(With insights from Cointelegraph)