According to China Daily, Chinese authorities are preparing to launch a state-controlled platform allowing the trading of non-fungible tokens (NFTs) and other digital assets. The initiative is a joint project between government organizations and a private company.

The China Digital Asset Trading Platform, built in partnership with the China Technology Exchange, China Cultural Relics Exchange Center, and Huaban Digital Copyright Service Center Co. Limited, will launch on January 1, 2023.

The marketplace will operate under the license of the China Digital Exchange, set up by the Ministry of Science and Technology, the State Intellectual Property Office, the Chinese Academy of Sciences, and the Beijing municipal government.

The exchange facilitates the purchase and sale of intellectual, scientific, and technological property rights in the People’s Republic. It will provide the underlying infrastructure for the new trading platform, taking responsibility for processing transactions and implementing settlement mechanisms.

According to Huaban President Yin Tao, the new marketplace will be compliant with applicable regulations and provide trading services for digital collectibles and digital copyrights. 

He also explained that as China has been cracking down on crypto-related activities, the term digital collectibles is often preferred by media outlets and companies over NFTs to avoid association with cryptocurrencies.

Yu Jianing, co-chair of the Blockchain Committee of the China Communications Industry Association, also further stated that in terms of supervision and compliance, this market faces some uncertainties and greater compliance risks, but laws and regulatory policies will be gradually improved.