Local news source Sina News said on December 28 that China will open its first regulated platform for trading nonfungible tokens (NFT) on January 1, 2023. The entity was made by the state-owned Chinese Technology Exchange, the state-owned Art Exhibitions China, and the private corporate Huban Digital Copyrights Ltd. It acts as a secondary market for the exchange of NFTs.
In addition to non-fungible tokens, the platform will enable the exchange of digital asset-related copyrights. According to a person familiar with the situation, the goal of the project is to “regulate and avoid the excessive speculation in secondary [NFT] markets.” Yu Jianing, a major specialist on digital assets and metaverse developments in China, stated in an interview:
“In terms of industry supervision and regulation, digital assets represent a new form of commerce, and much regarding laws, regulations and supervisory policies remains to be refined. Therefore, a deal of uncertainty exists. Platforms have a clear responsibility for the listing and trading of digital assets. Relative to intellectual property rights and digital copyrights, digital assets face a greater risk of regulatory soundness.”
The Hangzhou Internet Court, a Chinese court specializing in internet-related legal disputes, concluded on November 29 that NFTs are virtual property protected by law and “have the object characteristics of property rights, including value, scarcity, controllability, and tradeability.” Since 2021, cryptocurrency trading have been banned in China, however cryptocurrency is regarded as virtual property protected by the law.