SNEAK PEEK
- China is launching the NFT Marketplace on January 1.
- The firm’s goal is to manage and avoid excess volatility in markets.
- In 2021, cryptocurrency trades were forbidden in China.
On January 1, 2023, China will open its first authorized market for NFT exchanges, according to a local news outlet. The business, which serves as a secondary market for the trading of NFTs, was founded by the state-owned Chinese Technology Exchange, the state-owned Art Exhibitions China, and the corporate business entity Huban Digital Copyrights Ltd.
The portal would also make it easier to trade rights for crypto assets. The company aims to control and minimize excessive speculation in secondary NFT marketplaces. The site will function as a secondary market for NFTs and virtual asset patents.
Yu Jianing, who is a leading expert on digital assets and metaverse developments in China,, said that in the context of industry oversight and regulation, digital tokens constitute a novel type of trade, and much needs to be polished in the areas of laws, rules, and supervisory procedures.
As a result, there is a great deal of ambiguity. Companies are responsible for advertising and selling digital assets. Digital assets suffer a greater danger of regulating stability than intellectual property rights and virtual trademarks.
The Hangzhou Internet Court, which specializes in network legal battles in China, previously declared on Nov. 29 that NFTs are legitimate digital assets with object properties of land ownership such as price, rarity, flexibility, and traceability.
Cryptocurrency exchanges have been prohibited in China since 2021, even though crypto is regarded as an electronic property that is legally protected.
For the majority of the last two years, NFTs have been popular among Chinese investors, though in a different manner than the rest of the world. According to Chinese legislation, NFTs cannot be acquired using bitcoin, and they are considered electronic items rather than NFTs.
On January 1, an event will be held to celebrate the marketplace’s inauguration in Beijing, the country’s capital.
