Media Report Unveils China to Launch Digital Asset Trading Platform – Local media reported that Chinese authorities are preparing to launch a state-controlled platform for trading non-fungible tokens (NFTs) and other digital assets. The idea is a collaboration between government agencies and a private business. China Technology Exchange, China Cultural Relics Exchange Center, and Huaban Digital Copyright Service Center Co. Limited will launch the “China Digital Asset Trading Platform” on January 1, 2023, according to a report published by Sina Finance.
The marketplace will operate under the license of the China Digital Exchange, set up by the Ministry of Science and Technology, the State Intellectual Property Office, the Chinese Academy of Sciences, and the Beijing municipal government. In the People’s Republic, the exchange allows the buying and sale of intellectual, scientific, and technology property rights. It will supply the infrastructure for the new trading platform, assuming responsibility for transaction processing and settlement mechanisms.
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President of Huaban Yin Tao noted that the new marketplace will comply with existing legislation and offer trading services for digital valuables and digital copyrights. As China has been cracking down on crypto-related activity, media outlets and enterprises frequently choose the phrase “digital collectibles” over “NFTs” to avoid affiliation with cryptocurrency. Co-chair of the Blockchain Committee of the China Communications Industry Association, Yu Jianing, remarked that supervision and compliance risks on this market are unpredictable and increasing, but laws and regulatory policies will be gradually improved.
According to reports, a ban on the resale of digital collectibles imposed by Chinese regulators to limit market speculation with these assets was the reason behind Tencent’s decision to shut down its NFT platform, Huanhe. The news of the transfer was made in July, less than a year after its debut. In June, the popular social networking app Wechat, which is also operated by a Chinese technology behemoth, stated its plan to block public accounts that facilitate secondary trade of non-fungible tokens. The Tencent News app ceased selling NFTs shortly thereafter.
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