Even though the Chinese government has adopted a unique regulatory model due to concerns about cryptocurrencies, we are mistaken if we assume that the country is reluctant to the Web3 development!
As the world’s leading economic power, China has always been at the forefront of technological development. And with their recent push into the world of Web3, it looks like they’re poised to take a major leadership role in this growing industry.
Last week, China announced that it will be launching its first national non-fungible token marketplace in 2023. This move is sure to shake up the global NFT landscape and could have big implications for the future of Web3 development. So what does this all mean for Web3 enthusiasts? Let us take a closer look.
Web3 Development in China
China is a key player in the global Web3 development landscape and its advancements show no signs of slowing down.
The development of Web3 in China has been shaped by government regulations concerning cryptocurrencies due to potential instability. Nevertheless, Chinese businesses are continuing to explore new uses of blockchain technology while actively pursuing innovation.
With its national and regulated marketplace, traceability applications within the supply chain, and an ambitious pilot project for digital renminbi, China has made a mark in this revolutionary technology – paving the way for future innovations and setting an example for other countries worldwide.
For example, the biggest commerce company in China, Alibaba is rewarding players with non-fungible tokens on its first blockchain-based game, Ant Adventure. Additionally, users can play the game through Alipay mobile app. To trace food processing in the supply chain management industry, Walmart China and VeChainThor blockchain are working together to create the Walmart China Blockchain Traceability Platform.
Furthermore, China has also been very active in the medical sector regarding data treatment and verification. The country has also developed its own CBDC, the digital yuan and it is gradually expanding the pilot project to more provinces.
The NFT Industry in China
China is making waves in the Web3 development landscape by actively pursuing innovations in blockchain technology. Based on a report by Research and Markets, the NFT industry in China is estimated to grow significantly at a CAGR of 49.6% from 2022 to 2028. The forecast proves that the country is set to have a bigger share of the global industry in terms of adoption and innovation.
Non-fungible tokens have been around for a few years now, but it was not until recently that Chinese citizens began to understand the full scale of their capabilities. Non-fungible tokens offer an unparalleled level of security, as each token is unique and cannot be replicated or counterfeited. This makes them incredibly useful for creators who want to protect their work from exploitation or theft.
Since last year, Chinese authorities have been putting in place regulations for non-fungible tokens as part of its effort to promote innovation and development within the Web3 space. The government has released guidelines that clearly define NFTs as digital assets with clear economic value, making them eligible for legal protection under the country’s laws. This provides the necessary assurance needed by investors, developers, and entrepreneurs so they can operate without fear of repercussions.
In addition to the uptick in DeFi protocols usage, several high-profile partnerships between Chinese companies and leading Web3 projects are also strengthening investor confidence in the sector’s potential. For example, Huobi Group joined forces with the Decentraland metaverse last year to create an exclusive digital playground built on Ethereum using blockchain technology called Huobi World Plus. The metaverse allows gamers from all over the world to access exclusive content previously unavailable anywhere else.
China’s First National NFT Marketplace in 2023
Based on a report published by the local news outlet, Sina News on Dec 28 last year, China announced that it is going to launch the first national and regulated platform for NFT trading on Jan 1, 2023.
This platform is the result of a collaboration between state-owned organizations, including the Chinese Technology Exchange and Art Exhibitions China, as well as a private corporate entity, Huban Digital Copyrights Ltd. The new platform exchange will allow users to purchase digital assets from an organized market, which will help reduce speculation in the industry.
The NFT marketplace will operate differently than traditional cryptocurrency exchanges due to its emphasis on regulation. Yu Jianing, an expert on metaverse developments in China mentioned that laws, regulations, and supervisory policies need to be refined because digital assets represent a new form of commerce. He further added saying that the new platform has a clear responsibility for the listing and trading of digital assets. Yu Jianing believes that digital assets face a greater risk of regulatory soundness in comparison to intellectual property rights and digital copyrights.
The launch of this nationwide NFT exchange could mark a turning point in the mainstream adoption of virtual tokens if it is successful in providing users with safe access to digital asset trading services. Users will be able to purchase non-fungible tokens directly from the platform rather than having to rely on peer-to-peer (P2P) exchanges or other methods that are vulnerable to manipulation or fraud.
Additionally, this new platform will also provide support for copyright holders who wish to monetize their work by allowing them to list their works for sale directly on the platform rather than having them listed on secondary markets such as OpenSea or Rarible.
Non-fungible tokens are quickly becoming the hottest digital asset in town and China is leading the charge with its new marketplace launched this year. With this new platform, users will have access to a secure marketplace for NFT trading as well as support for copyright holders who wish to monetize their work.
It’s time to get on board and join the NFT revolution – it could just be your ticket into Web3 success. Join NFTICALLY to launch your own NFT collections.