China’s Sichuan Province Will Launch an NFT marketplace Despite Strict NFT Regulation

A new China-based NFT platform

The cultural and tourism authority in Southwest China’s Sichuan province built an NFT trading platform to “encourage the music industry to actively adopt modern technology.”

The Sichuan government Thursday said a number of music companies are using blockchain technology to safeguard their copyright.

Many companies in China refer to NFTs as “digital collectibles” following state media’s denouncement of the market frenzy. However, the Sichuan authority did not shy away from using the term “NFT” in its Thursday statement.

The department that released the statement told Forkast that the NFT platform project was outsourced to a local blockchain company. Meanwhile, some Chinese state media are also building their own platforms. 

Shandong province’s state-run television station last week said it plans to build a “digital collectibles” trading platform. The Economic Daily, a mouthpiece of the Chinese Communist Party, called for stricter regulation of “digital collectibles” last week.

In March, Weibo, a China-based major social media platform with 249 million daily active users, launched TopHolder, an NFT marketplace that allows users to mint and sell their NFTs.

Before minting and selling NFTs on TopHolder, users must first complete an internal KYC verification process.

If their NFTs are proven to be copied from other users, participants will face penalties, although a representative from the marketplace told Forkast that there is currently no public decision on how violators would be handled with.

The marketplace is also banning users from flipping assets and only permits free transfers after completing a 180-day holding period.

Chinese NFT marketplaces have started implementing self-regulatory guidelines on their platforms as state-backed media echoed warnings against speculation in the NFT market. 

Chinese tech giants pledged to eliminate speculation on their NFT markets, with Alibaba’s blockchain subsidiary AntChain imposing a 180-day transfer lock on its platform while Tencent has a blanket ban on secondary transfers.

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