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China is about to establish an NFT industry that will operate with no involvement with cryptocurrencies.
China is about to make a massive move with non-fungible tokens (NFTs) by drawing a clear line between them and cryptocurrencies. Already, China’s state-backed Blockchain Services Network (BSN) is working on rolling out infrastructure to support the deployment of NFTs. According to a South China Morning Post report, the BSN will unveil the infrastructure by month end to support businesses and individuals. Generally, the development will allow the people of China to build platforms and apps to manage NFTs.
China is about to establish an NFT industry that will operate with no involvement with cryptocurrencies. The chief executive of Red Date Technology, which gives technical support to BSN, He Yifan, assured that NFTs “have no legal issue” within China. Yifan said that NFTs are free from legal troubles as long as they do not have anything to do with BTC or other crypto assets. The executive said the infrastructure would utilize an open, permissioned blockchain to enable an on-chain governing body.
China to Create State-Backed NFTs Industry
Per the report, the project is officially the BSN-Distributed Digital Certificate (BSN-DDC). And users can use the Chinese yuan to make payments.
Typically, the release and trading of NFTs happen on public blockchains. These blockchains are decentralized, and they give access to persons who want to write or read data. However, public blockchains, where NFTs are launched, are illegal in China. In the country, all internet systems are to verify user identities. The state also requires that internet systems give access to the regulator to intervene in case of “illegal activities.”
Yifan reiterated to Cointelegraph that Public Chains could not legally operate in China. Therefore, he opined the desperate need for a credible and low-cost infrastructure to harbor all NFTs in China. He added that the lack of dedicated nationwide NFT infrastructure would only mean that NFTs will be launched on “unreliable” private blockchains in the country.
“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.”
He added that the infrastructure would integrate 10 chains, including the adapted version of Ethereum and Corda. Reportedly, BSN-DDC has the potential to disrupt the current NFT industry. Ahead of its official launch, the infrastructure has attracted over 20 partners. The partners include video service provider Sumavision, Cosmos blockchain network, and digital receipt system maker Baiwang.