A news report suggests that China may be setting up a unique platform where the trading of digital assets shall be carried out.
The news item further suggests that the intended platform would be established on the basis of a public-private partnership.
It has been noted in the news item that the Chinese Government aims at addressing the issue pertaining to the ‘speculative’ nature of digital assets.
A centralized and fully regulated platform under the government’s watch is essential for achieving the desired objective, quoted news report.
Government-Controlled National Platform for Digital Asset Trading
According to local media reports in China, the ruling Government has carved out a plan which involves digital collectibles and assets.
The plan provides for the establishment of a national-level platform where trading of non-fungible tokens (NFTS) and other digital assets shall be facilitated.
Media also reported that the proposed platform has already been established through a public-private partnership setup.
The platform would be directly answerable to the Government and governmental institutions and shall be a fully regulated platform.
For the purposes of the project, the Government joined hands with governmental institutions and a company from the private sector.
What Is “China Digital Asset Trading Platform”?
As per the local news in China, the name of the project is “China Digital Asset Trading Platform”.
The platform has been established in collaboration with multiple entities namely Huaban Digital, China Technology Exchange, and China Cultural Relics.
Sina Finance, which is a Chinese media outlet, informed us that the launch of the platform is due on 1st January 2023.
Nationalized Platform
The project will serve as a national platform specially built for the purposes of digital asset trading at the national level.
As per the news, the platform shall obtain a license from an entity to be set up later namely ‘China Digital Exchange’.
The licensing authority would be established in collaboration with the municipal government in Beijing, the Science and Technology Ministry, and the Office of State Intellectual Property.
It has been proposed that a national platform would be a market for buying and selling of technology, digital collectibles/assets, intellectual property, etc.
Furthermore, the national platform would also provide infrastructure designs and layouts for fresh platforms in the country. It would also be responsible for executing transactions and settlements.
Yin Tao, President of Huaban explained that the project shall be subject to all applicable laws, rules, and regulations.
He further told that the marketplace shall render services in trading digital copyrights, NFTs, and other digital collectibles.
Ambiguity
Not a single time, at any stage of the project, China hasn’t used the word “cryptocurrencies” which are also pure digital assets. Hence, there is an ambiguity with regard to China’s intention of excluding digital currencies.
This assumption also finds support from the fact that the words ‘digital collectibles’ have been used deliberately. This further strengthens the assumption that the proposed project is not going to facilitate any cryptocurrencies.
The situation in China is that crypto trading platforms are non-existing because they were forced out of China by the Government.
Similarly, crypto mining farms were cracked down and they were also forced to leave the country and settle somewhere else.
Does this mean that crypto trading platforms and miners would return back to China? Or the establishment of a national-level digital asset trading platform is non-relatable to digital currencies?
No matter what China does, it always adopts the strategy of keeping things very secret and confidential. Therefore, not much comes out of the Chinese jurisdiction until the country wants to share the information.
Even when it comes to sharing details about the national trading platform, it is completely up to the country how much information is to come out.
If the country does not want to share much information, then no inside or outside sources will be able to learn about its services or platforms.
