China will launch its first regulated platform for nonfungible token (NFT) trading on January 1st, 2023, according to a report from local news source Sina News that was published on December 28. The state-owned Chinese Technology Exchange, the state-owned Art Exhibitions China, and the privately-owned Huban Digital Copyrights Ltd. formed the organization, which serves as a secondary market for the exchange of NFTs.
The platform will make it easier to trade copyrights for digital assets in addition to NFTs. According to a person familiar with the project, its goal is to “regulate and avoid the excessive speculation in secondary [NFT] markets.” Yu Jianing, a well-known authority on Chinese developments in digital assets and the metaverse, said in an interview:
“Digital assets represent a new form of commerce in terms of industry supervision and regulation, and much needs to be clarified in terms of laws, regulations, and supervisory policies. There is therefore a great deal of uncertainty. It is clear that platforms are in charge of listing and trading digital assets. Digital assets are more susceptible to regulatory soundness risk than intellectual property rights and digital copyrights.
NFTs are considered to be virtual property that is legally protected and that “have the object characteristics of property rights such as value, scarcity, controllability, and tradeability,” according to a previous decision by China’s Hangzhou Internet Court on November 29. Since 2021, cryptocurrency exchanges have been prohibited in China, despite the fact that crypto ownership is recognized as virtual property that is protected by the law.