China Launches its Own NFT Marketplace
China is launching its first national non-fungible token (NFT) marketplace next year, a local news publication reported.
The Chinese digital asset trading platform, which serves as a secondary market for NFT exchanges, was set up by state-owned Art Exhibitions China, the country’s state-run technology exchange and private corporate entity Huban Digital Copyrights Ltd.
The platform will reportedly enable the trading of copyrights of digital assets and other collectibles, in addition to non-fungible tokens. The aim of the project is to regulate secondary NFT markets and prevent excessive speculation.
For most of the past two years, NFTs have been popular among Chinese traders, but not in the same way as in the rest of the world.
NFTs are traded on closed, highly regulated platforms, not decentralized ones. Also under Chinese law, NFTs cannot be bought with cryptocurrency.
Do NFTs have ownership rights?
The Hangzhou Internet Court, which specializes in Internet-related legal disputes in China, recently ruled that digital assets have property rights and are comparable to items sold on e-commerce sites, which is seen as a big step forward.
Digital assets have the characteristics of property rights such as value, scarcity, controllability and tradability and belong to private virtual property, which should be protected by China’s laws.
Digital tokens represent a new form of trading in terms of supervision and regulation of the sector, and much remains to be improved in terms of laws, regulations and supervision policies.
As a result, there is great uncertainty. Platforms are clearly responsible for listing and trading digital assets. They are more vulnerable to regulatory stability than intellectual property rights and digital copyrights.