China has a knack for creating everything of its own, right from its own blockchain network to even the Sun of its own -- or -- its own Moon. In April 2020, China government launched Blockchain Services Network (BSN), its own blockchain infrastructure run and governed by Chinese government.
Now in a latest, the BSN is now planning to roll out infrastructure to support the deployment of non-fungible tokens (NFTs). The NFT infrastructure named as BSN-Distributed Digital Certificate (BSN-DDC) is expected to launch at the end of this month.
NFTs which are traded on BSN-DDC will have no compliance issues in China as 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”.
Although NFTs are not illegal in China, several big tech companies have chosen to call their NFT projects “digital collectibles” for compliance reasons. And, for this very reason China is planning to treat blockchain-based NFTs differently from digital assets.
According to Chinese leading daily South China Morning Post, He Yifan, chief executive of Red Date Technology, which provides technical support to BSN, told that NFTs “have no legal issue in China” as long as they distance themselves from cryptocurrencies like bitcoin.
NFTs in China will see annual output in the billions in the future, said Yifan.
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.
Red Date will create a complaint NFT platform a centralized entity to govern the infrastructure and intervene in the case of any illegal activity. Red Date will also be launching two BSN portals outside China in countries like Turkey and Uzbekistan.