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China to create own NFT industry based on state-backed blockchain infrastructure

January 13, 2022

China's state-backed Blockchain Services Network (BSN) plans to roll out infrastructure at the end of this month to support the deployment of non-fungible tokens (NFTs), a major step to creating a Chinese NFT industry that is not linked to cryptocurrencies.

Although Beijing has banned cryptocurrencies, He Yifan, chief executive of Red Date Technology, which provides technical support to BSN, told the South China Morning Post that NFTs "have no legal issue in China" as long as they distance themselves from cryptocurrencies like bitcoin.

The infrastructure, named the BSN-Distributed Digital Certificate (BSN-DDC), to differentiate it from crypto-transacted NFTs, will offer application programming interfaces for businesses or individuals so they can build their own user portals or apps to manage NFTs. Only the Chinese yuan is allowed for purchases and service fees.

"NFTs in China will see annual output in the billions in the future," He said in an interview.

NFTs are launched and traded on public blockchains, which are decentralised platforms that provide access to anyone wanting to write and read data. However, public chains "are illegal in China" as the state requires all internet systems to verify user identities and permit the regulator to intervene in the event of "illegal activities", He said.

He said that BSN-DDC will integrate 10 chains, including the adapted version of Ethereum and Corda, plus domestic ones like Fisco Bcos, initiated by Tencent-backed fintech firm WeBank.

Although NFTs are not illegal in China, several Big Tech companies have chosen to call their NFT projects "digital collectibles" for compliance reasons.

Ant Group, the fintech affiliate of Post owner Alibaba Group Holding, and Tencent Holdings were the first Chinese tech giants to embrace NFTs, launching dozens of products since last summer.










SOURCE: Yahoo Finance

Image Source:  CBS