China steps in with its National Digital Asset Exchange for NFTs and Metaverse

• Blockchain Council
• September 17, 2024

On New Year’s Day, China launched a state-sanctioned platform for the secondary trading of digital assets. The China Digital Assets Trading Platform resulted from a strategic partnership with the Cultural Relics Exchange, The China Technology Exchange, and the Copyright Service Centre. The platform’s goal is to standardize the trading process and curb speculation in the market. However, it is currently only available through a live sign-up process, so it is still being determined what kind of intellectual property will be supported on the platform.

In mid-2022, tech giants Ant, Tencent, JD, and Baidu brought a ban on digital asset trading due to concerns about the speculation surrounding non-fungible tokens (NFTs). While NFTs are not subject to the same restrictions as cryptocurrencies in China, Tencent’s NFT services have already been shut down. However, NFTs are supported on BSN, the government-backed infrastructure network for business-oriented use cases.

Also read: What is an NFT? Step-by-Step Beginners Guide 2023 [UPDATED]

China’s new trading platform is envisioned as a credible inventory service mechanism for tradeable digital assets, including offering verification, rights monitoring, and digital asset registration through the China Cultural Protection Chain. Considering the Chinese government’s traditional stance on the financial risks associated with speculative trading, it is still being determined what restrictions will be placed on the resale of digital collectibles.

The Metaverse development is also a driver for the creation of the trading platform, as China recognizes the importance of digital assets for avatars, clothing, art, and museum pieces. To that end, the platform has a working innovation entity of tourist organizations, museums, copyright holders, and a Metaverse working group consisting of local governments and state-owned enterprises. With these developments onboard, China is all set to move forward with its NFT and Metaverse large-scale adoption and utilize these technologies in bridging the national economy.

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