China launches a “Digital Asset Trading Platform,” Media Report Unveils
Local media reported that a marketplace for digital assets will soon open in China under a public/private partnership. The report states that the government is seeking to establish a regulated trading platform to trade digital collectibles in order to curb market speculation.
National Marketplace to Support Trading of Digital Collectibles and Copyrights In China
Local media reported that Chinese authorities are planning to launch a state-controlled platform that allows the trading of non-fungible tokens and other digital assets. This joint venture is between two government agencies and a private firm.
The “China Digital Asset Trading Platform”, which was created in partnership with the China Technology Exchange, China Cultural Relics Exchange Center and Huaban Digital Copyright Service Center Co. Limited will launch on January 1, 2023, according to Sina Finance’s report.
The China Digital Exchange license will allow the marketplace to operate. It was created by the Ministry of Science and Technology and the State Intellectual Property Office.
The exchange allows for the purchase and sale intellectual, scientific, or technological property rights in People’s Republic. It will be responsible for processing transactions and implementing settlement procedures.
Huaban President Yin Tao said that the new marketplace will comply with applicable regulations and offer trading services for digital copyrights and digital collectibles. To avoid being associated with cryptocurrencies, media outlets and companies prefer the term “digital collectors” since China has been tightening its crypto-related policies.
This market is more vulnerable than others in terms of compliance and supervision, but laws will be gradually improved and better enforced, said Yu Jianing (co-chair of Blockchain Committee of China Communications Industry Association).
Tencent’s decision not to resell digital collectibles was apparently due to a ban imposed by Chinese regulators in order to limit market speculation. The news of the move was announced in July, just one year after its launch.
The Chinese tech giant also owns Wechat, a popular social media platform. In June, it announced that it would ban public accounts from facilitating secondary trading in non-fungible tokens. Soon after, Tencent News stopped selling NFTs.
Do you believe China will eventually open up digital asset trading beyond NFTs to more people? Leave your comments below.