Two Things to Watch Out for in China | Covid Cases & NFT Marketplace

Legal Status of NFTs in China: Court Ruling Overview

This year, China has made several headlines just because of 

Two factors: rising Covid-19 cases and the government's shifting attitude toward the NFT and metaverse sector. 

As CoinGabbar previously reported, a local Chinese court had ruled out its stance on the legal status of NFT. According to the court, NFTs are online virtual properties that should be safeguarded by the Chinese government and legal authorities under Chinese law.

This news has ignited a celebratory event in the Chinese NFT market. In line with this, a Chinese media outlet on December 29 reported that the country plans to launch its first regulated marketplace for the trading of non-fungible tokens (NFTs) on January 1, 2023.

China, the world’s largest country, has currently put a ban on cryptocurrency trading, but the country has a positive stance towards NFTs and Metaverse sector. As per reports, the new NFT marketplace was developed by the trio of state-owned Chinese Technology Trade, the state-owned Art Exhibitions China, and the private firm Huban Digital Copyrights Ltd.

China’s first regulated NFT Marketplace

The Chinese government-backed NFT marketplace will act as a secondary market for NFT trading. This development is anticipated to have a substantial impact on China's NFT sector. It will be easier for buyers and sellers to identify and exchange NFTs, and there will be greater assurances of validity and ownership.

The marketplace's goal is to make it easier to trade non-fungible tokens (NFTs) and transfer copyrights for digital assets. It also intends to regulate and limit excessive speculation in the secondary markets for NFTs.

Yu Jianing, a Chinese expert on digital assets and metaverse developments, recently shared his thoughts on the industry in an interview. He stated that the digital asset industry is still in its infancy and that many aspects, including legislation and regulatory procedures, need to be revised.

As a result of the sector's infancy, there is a significant amount of uncertainty. Yu Jianing also emphasized the need for platforms to list and trade digital assets. He added that digital assets, such as digital copyrights and intellectual property rights, are increasingly subject to regulatory challenges.

Apart from that, the Chinese government is currently encountering challenges concerning the new Covid-19 cases. For the past few years, the Covid-19 outbreak significantly impacted the trading volume of the crypto, NFT, and metaverse industries.

Rising Covid-19 Cases in China

Since relaxing the restrictive restrictions last month in response to rare public protests, China has seen an increase in Covid-19 cases. Since then, the government has undertaken strict measures, with the daily case count reaching new highs in the first two weeks of this month. 

Recent Chinese media outlet reports reveal that the number of Covid-19 cases in the country has started falling following strict measures. However, the advent of the outbreak creates FOMO in the crypto community, which is already burdened by the ongoing crypto winter.

What do you think, will the Covid-19 outbreak aggravate the ongoing bear market? Share your thoughts in the comment section below.

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