China plans to legalize NFTs, prepares separate laws from cryptocurrencies

  • China seeks to capitalize on its booming NFT industry and work towards creating a pan-China NFT infrastructure.
  • The BSN-DDC infrastructure will allow businesses and individuals to build platforms and apps for managing NFTs.

Asian economic giant China has held a very hardline stand on the use of cryptocurrencies! The government has been closing all the gates for any kind of crypto use in the country. However, the Chinese state looks pretty interested in the boom surrounding the non-fungible tokens (NFTs).

The latest market report suggests that China is planning to treat blockchain-based NFTs differently from digital assets. Well, this comes as the local NFT industry in China is booming and hence China doesn’t want its crypto laws to affect the industry growth.

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Local news publication – the South China Morning Post (SCMP) – published an interesting report earlier today. The report notes that a government-backed blockchain project – BSN-Distributed Digital Certificate (BSN-DDC) – is working on blockchain infrastructure that would allow businesses and individuals to build platforms and apps for managing NFTs.

Officially dubbed as BSN-Distributed Digital Certificate (BSN-DDC), the program seeks to offer support for non-crypto NFTs through different application programming interfaces (APIs) and develop user portals and apps wherein fiat money would be the sole method of payment.

He Yifan, chief executive of Red Date Technology, which provides technical support to BSN, confirmed that publication that NFTs have no legal issues in China. The only thing is that they must not trade against Bitcoin or other legal cryptocurrencies. “NFTs in China will see an annual output in the billions in the future,” he added.

Building up the NFT infrastructure in China

The Red Date CEO also spoke about plans of building a common infrastructure for NFTs. He said that the NFT infrastructure would be on an open permissioned blockchain that will enable an on-chain governing body.

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CEO Yifan He also said that a low-cost infrastructure is urgently required to host all NFTs in China. Without a dedicated pan-China NFT infrastructure, NFTs can only work on “unreliable” private chains said the executive. Thus, Red Tape will create a complaint NFT platform a centralized entity to govern the infrastructure and intervene in the case of any illegal activity.

Yifan He said that Red Tape is working alongside all DDC project partners thereby making the network as transparent as possible. This is while staying compliant with Chinese regulations and laws. The payment of all gas fees on the BSN-DDC network will happen in fiat money. The executive further noted:

We will provide services to NFT companies in Hong Kong, which means if there is any international business involving issuing NFTs inside China, they definitely can choose to use the BSN-DDC network via our Hong Kong gateway.

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Some of the state-owned Chinese firms like China UnionPay, China Mobile, and State Information Centre are offering support to BSN’s NFT infrastructure. The Red Date CEO explained that BSN-DDC network will integrate a total of 10 blockchains. Red Date Technology will also be launching two BSN portals outside China in countries like Turkey and Uzbekistan.

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About Author

Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fictions novels and sometimes explores his culinary skills.

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