- Due to a lack of regulatory certainty, Yucang Digital Collectibles has indicated that it will buy back items sold on its site.
- According to the market, a lack of regulatory certainty poses hazards to local NFT enterprises.
- According to recent research, the number of digital collecting platforms in China has risen to over 500, a 5X growth since February 2022.
Due to a lack of legislative clarity, non fungible token (NFT) marketplace Yucang Digital Collectibles said that it is purchasing back assets that were traded on its site.
The market stated that while operations would continue, new user registrations would not be permitted, and sales and transfers of digital items would be suspended.
The market claimed that local NFT enterprises are at risk due to a lack of regulatory clarity.
Chinese businesses prefer “digital collectibles” instead of “NFTs” because official media has condemned NFT speculation.
The platform was established two and a half months ago, and as of the most recent posts from Yucang’s official WeChat account, only one batch of digital collectibles has been sold since then.
The Hundsun Chain, which is used by Yucang, was developed by the Shanghai Stock Exchange-listed company Hundsun and certified by the regional internet agency.
It is interesting to note that according to current data, there are now more than 500 digital collectible platforms in China, a 5X increase from February 2022, when there were just a little more than 100 platforms for nonfungible tokens.
According to a local Chinese newspaper, the country’s rising obsession with an interest in digital riches coincides with the rapid growth in the number of NFT platforms. Tencent and Alibaba, two enormous internet companies, have both shown interest in the developing sector and filed multiple trademark patent applications.
Despite repeated government warnings, Chinese consumers’ enthusiasm for digital assets is expanding. According to government officials, there are numerous speculative transactions on the Chinese NFT market, with an emphasis on the secondary market, posing risks to investors.