China Creates Its Own NFT Market
China’s Blockchain Services Network (BSN) plans to roll out the NFT infrastructure by the end of January.
The Chinese government plans to provide developers with the infrastructure to create NFT-enabled marketplaces and applications by the end of January. This was reported by the South China Morning Post.
The state blockchain BSN is working on the platform for developers. According to the SCMP, the Chinese government aims to create an NFT marketplace not linked to cryptocurrencies. Other companies, such as Red Date Technology, are helping BSN work on the platform.
NFTs “have no legal issue in China” as long as they distance themselves from cryptocurrencies, said He Yifan, chief executive of Red Date Technology.
Public distributed ledgers are banned in China as the state requires internet systems to verify user identities. Thus, the new platform will be open but managed by Blockchain Services Network. All tokens will be issued based on a BSN-Distributed digital certificate, which excludes the possibility of crypto transactions. The only currency for settlements on the platform will be the digital yuan (e-CNY).
Recall that since May 2021, Chinese authorities have been consistently strengthening the regulatory framework for digital assets. Crypto mining was banned, and any cryptocurrency transactions fell into the category of illegal financial activities.