Starting January 1, 2023, Chinese residents can trade digital collectibles using a state-backed blockchain platform. This is welcome news for residents who were previously banned from engaging with NFTs. However, as is the norm in China, every activity has to be closely watched by the government.
The exchange, dubbed “China Digital Asset Trading Platform,” will be unveiled on the first day of 2023. And there will be an official ceremony to celebrate the launch of the marketplace in Beijing.
According to people in the know, the marketplace will be fully compliant with the necessary government laws. To oversee its operations, three institutions have been tasked with the responsibility. There is the China Technology Exchange and the China Cultural Relics Exchange Center, both of which are stage-backed. And the other is a private corporation known as Huaban Digital Copyright Service Center.
The State-Backed Blockchain Platform Will Allow Users To Speculate On Digital Collections
The exchange will allow users to trade digital collections, or NFTs, digital copyrights, and property rights. And as mentioned earlier, it will run on a specially designed distributed ledger dubbed “China Cultural Protection Chain.”
The chain will serve as “the only credible depository service platform for tradable digital assets, providing digital asset registration, confirmation of rights, depository, rights protection monitoring, and copyright protection services for institutions and individual users.”
Additionally, the exchange will partner with “Digital Collection Home,” the first metaverse NFT credit evaluation and aggregation platform in China. This partnership will ensure users of the exchange have access to the metaverse and NFT collection-related data, content, and other aggregation services.
The launch of the exchange will allow users to speculate on digital collectibles. This wasn’t possible, even though earlier this year the state-backed blockchain network had introduced a platform that allowed for the issuing and selling of tokenized digital collectibles. Unsurprisingly, no crypto is allowed, meaning only fiat can be used to buy the collectibles and pay platform fees.