China, which is known for having an extremely restrictive approach to the cryptocurrency sector, is taking small steps towards exploring the digital asset sector. The country is preparing to launch an official, state-backed NFT marketplace that will allow Chinese NFT traders to venture into the space, but under the supervision of the Chinese government. The launch of this market has been scheduled for January 1. It will be held in the Chinese capital Beijing at a time when the country is again facing the COVID-19 crisis.
Called the ‘China Digital Asset Trading Platform’, the initiative aims to create a secure ecosystem for secondary sales of NFTIf left unattended, can expose buyers to dangerous attacks and scams.
Three state-owned entities – China Technology Exchange, China Cultural Relics Exchange Center, and Huaban Digital Copyright Service Center Co., Ltd. – have come together to create the exchange platform. This NFT translation, complies with China’s laws and regulations, said China’s Sina News. that is report.
Instead of using an existing one blockchain Prefer Ethereum or solanaThe Chinese government has decided to place this NFT platform on a specially curated blockchain, named ‘Chinese Cultural Heritage Chain’.
According to the report, the blockchain was initiated by the China Cultural Relics Exchange Center, in order to ensure copyright protection of the cultural digital sector.
In September last year, China imposed a ban on all crypto-related activities.
The government at the time had not yet decided on a specific stance on the classification of NFTs.
In this gray area, secondary sales of digital collectibles have started to pick up pace in China.
In March of this year, WeChat public accounts associated with NFT trading, which have been blocked by its parent company Tencent.
“In order to prevent the risk of speculative trading in virtual currencies, the WeChat public platform has recently standardized and edited public accounts and small programs for speculation and secondary sale of digital currency,” WeChat said. digital collection”. statement at that time.
Despite increasing scrutiny of the virtual asset sector, China is slowly tapping to explore the potential of blockchain technology.
This country has tested extensively e-CNY CBDCis a blockchain representation of China’s fiat currency.
This week, Chinese authorities introduced a feature for existing CBDC users to allow them to send financial gifts to their friends and family in the form of ‘red packets’. Considered a symbol of ‘luck’, ‘red packets’ – also known as ‘Hongbao’ – are used to give money to people as a gesture of good luck during festivals in this Asian country. .
China is not ready for permission yet electronic money to penetrate its financial system.
Along with the volatility of the cryptocurrency sector and the anonymity of the transactions that cryptocurrencies provide, the amount of electricity required to maintain and run crypto-related activities has become problematic. worrisome to the Chinese authorities before all activity around that field is banned.
