• The Chinese government has announced plans to launch its own version of a state-backed non-fungible token (NFT) marketplace.
• The platform will go live on January 1 and become an official “secondary market for digital assets that comply with national regulations.”
• Unlike the rest of the world, NFTs in China will be minted on private blockchain networks and traded for fiat yuan instead of crypto assets.

The Chinese government has recently announced plans to launch a state-backed non-fungible token (NFT) marketplace, the China Digital Asset Trading Platform. This platform, which is set to go live on January 1, will become an official “secondary market for digital assets that comply with national regulations.”

The Hangzhou Internet Court previously ruled that virtual items such as NFTs can be legally recognized as property. This ruling, along with the Chinese government’s decision to launch its own version of an NFT marketplace, highlights the nation’s interest in cherry-picking technological advances associated with the crypto and blockchain space.

However, in contrast to the rest of the world, NFTs in China will be minted on private blockchain networks, while secondary market trading will have limitations in place in order to reduce speculation on NFT prices. As such, the NFTs in China will be labeled as “digital collectibles” rather than NFTs, and transactions will be recorded on centralized ledgers instead of on blockchain networks. Additionally, instead of being traded for crypto assets, the digital collectibles will be traded for fiat yuan.

The Chinese government’s move to launch its own NFT marketplace is part of its effort to sideline all crypto assets. Although it has effectively banned crypto trading, it wants to make use of certain technologies associated with the space in order to further its own agenda.

Overall, the launch of the China Digital Asset Trading Platform is an important step in the nation’s efforts to regulate the digital asset space and promote the adoption of blockchain technologies. It remains to be seen, however, how the market will develop in the future, and whether it will be successful in achieving its goals.