China Plans to Legitimate NFTs and Prepares Specific Cryptocurrency Laws

  • China wants to capitalize on its growing NFT industry and work to create an all-Chinese NFT infrastructure.
  • The BSN-DDC infrastructure will enable companies and individuals to create platforms and applications for managing NFTs.

The Asian economic giant, China, has maintained a very tough stance on the use of cryptocurrencies. The government is closing all doors for any kind of crypto use in the country. However, the Chinese state seems to be very interested in the rise of non-mungible signals (NFTs).

The latest market report suggests that China is planning to treat blockchain – based NFTs in a different way from digital assets. This is because the local NFT industry in China is booming and therefore China does not want its crypto laws to affect the growth of the industry.

The local news publication – the South China Morning Post (SCMP) – published an interesting report today. The report notes that a government-backed blockchain project – BSN-DDC Digital Certificate Distribution – is working on a blockchain infrastructure that would allow companies and individuals to build platforms and applications for NFT management.

Officially designated BSN-DDC Digital Distributed Certificates, the program aims to offer support for non-crypto NFTs by developing various application programming interfaces (APIs) and portals and applications for users when fiat money the only method of payment.

Yifan, CEO of Red Date Technology, which provides technical support to BSN, confirmed to the publication that NFTs in China have no legal problems. The only thing is that they should not trade Bitcoin or other legal cryptocurrencies. “NFTs in China will have an annual output of billions in the future,” he said.

Creation of the NFT infrastructure in China

The Red Date CEO also discussed plans to build a common infrastructure for NFTs. He said NFT infrastructure will be based on an open and approved blockchain that will be approved by a chain control body.

Yifan CEO also said that low – cost infrastructure is urgently needed to host all NFTs in China. Without a dedicated NFT infrastructure in China, NFTs can only operate on «unreliable» private chains, the executive said. Therefore, the red tape will create an NFT reporting platform, a centralized entity to control the infrastructure and to intervene in the event of any illegal activity.

Yifan said Red Tape is working together with all partners in the DDC project to make the network as transparent as possible. All this and comply with Chinese regulations and laws. All gas charges on the BSN-DDC network will be paid in fiat money. The executive also noted:

We will be providing services to NFT businesses in Hong Kong, which means if there is any international business related to the issuance of NFTs within China, they can definitely choose to use the BSN-DDC network through our Hong Kong gateway.

Support for NN BSN infrastructure is provided by some Chinese state-owned companies, such as China UnionPay, China Mobile, and the State Information Center. The Red Date CEO explained that the BSN-DDC network will integrate a total of 10 blockchains. Red Date Technology will also launch two BSN portals outside China in countries such as Turkey and Uzbekistan.

Javier Marquez

Javier Marquez has been closely following the development of bitcoin and blockchain technology since 2017. Since then, he has been working as a columnist, reporting on the ups and downs, implications and developments of the cryptocurrency market. He believes that cryptocurrencies and blockchain technology will have a huge positive impact on people's lives.

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