According to a local news source, China will introduce its first nationwide NFT marketplace in the New Year. The Chinese Technology Exchange, the Chinese Art Exhibitions Center, and the private company Huban Digital Copyrights Ltd. have all collaborated to establish the China Digital Asset Trading Platform as a secondary market for the trading of NFTs.
The platform will facilitate the exchange of NFTs and copyrights for virtual assets and other collectibles. This initiative aims to curb excessive speculation in the secondary markets for NFTs via regulation. In last two years, NFTs have been traded among Chinese investors but much less as compared to other regions.
The purchase of NFTs using cryptocurrency is prohibited under Chinese legislation. They are not called NFTs but digital transistors instead. Furthermore, digital artwork is traded on closed, highly controlled channels rather than being exchanged on decentralized networks.
In NFTs, Property Rights Are Recognized
A big step forward in protecting digital assets was taken last month when the Hangzhou Internet Court, a Chinese court specializing in internet-related legal issues, decided that digital assets had property rights equal to things sold on e-commerce platforms.
Non-fungible tokens (NFTs) are virtual network properties that should be safeguarded under country’s law because they have some of the same characteristics as traditional property rights, including value, controllability, rarity, and tradability.
There is still much to be addressed in terms of legal frameworks and regulatory frameworks for digital asset trading. Consequently, there is a lot of doubt. Listing and selling digital assets are unquestionably the responsibility of platforms. Regulatory inadequacy is a bigger threat to digital assets than IP or digital copyrights.