NFTs and digital asset copyrights will be traded on the state-backed platform.
China will launch its first regulated platform for trading nonfungible tokens (NFTs) on January 1, 2023, according to a report published by Sina News on December 28. Chinese Technology Exchange, Art Exhibitions China, and Huban Digital Copyrights Ltd, a private corporation, created the entity that serves as a secondary market for the exchange of NFTs.
In addition to NFTs, the platform will facilitate the trading of copyrights related to digital assets. According to a source familiar with the matter, the project aims to “regulate and avoid excessive speculation in secondary [NFT] markets.” An expert on digital assets and metaverse development in China, Yu Jianing, said in an interview:
Digital assets are growing in popularity, yet laws and regulations on them have not been fully refined. There is a lot of uncertainty surrounding this subject matter. Platforms such as crypto exchanges must take responsibility for the digital assets they list and trade. Relative to IP rights and digital copyrights, this subject has more of a risk of being sound per regulatory concerns. The Hangzhou Internet Court previously ruled that NFTs are property protected by law. They have many object characteristics of property rights, such as value, scarcity, controllability, and tradeability and are recognized as virtual property within China.