According to a state media outlet’s report, China will launch its first state-backed non-fungible token (NFT) marketplace, “China Digital Asset Trading Platform,” developed by a private sector firm, on Jan 1, 2023. 

It may not be what people want to hear, but in many ways China has been just as innovative and forward thinking in cryptocurrency adoption as any other nation. Despite the stance on cryptocurrencies, the Chinese have been developing their own version of blockchain technology and have made great strides in the world of crypto-finance. While cryptocurrencies are still illegal in the country, it’s clear that the Chinese have their own plans for the future.

Huaban Digital Copyright Service Center, a private firm based in Beijing, is the platform’s founder, along with two other state-backed firms. One is China Technology Exchange, and the other is Art Exhibition China.

The marketplace will also provide a platform to trade property rights, digital copyrights, and collectibles. According to the report, the blockchain supporting the marketplace is built on the “Wenbao Chain” (heritage protection chain), also known as the “China Cultural Protection Chain.”

In the last two years, Non-fungible tokens have remained much popular among the traders of China; however, their trade towards NFT is unlike the rest of the world. Per the country’s law, NFTs cannot be purchased via cryptocurrencies, and they are not popular with the term NFTs, but they prefer calling them collectibles.

In China, digital artwork is only traded on closed platforms. It is not traded on open platforms. The Chinese government passed a law at the beginning of December that digital assets will be treated as e-commerce products. They will have similar property rights as other products. This is a major development for the Chinese Government and digital artwork.

In September 2021, China completely banned cryptocurrency transactions and promised to break down risky activities related to NFTs trading. The decision to prohibit any activities relating to cryptocurrencies, particularly with the NFTs, received positive feedback from the public. However, the state had not revealed their reasoning behind the decision to ban cryptocurrency.

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