Shanghai to test NFT trading platform

The government of Shanghai has given the go-ahead to NFT trading platforms.

After concerns surrounding financial risks with NFT involvement, according to the city’s 14th Five Year Plan on the digital economy, Shanghai authorities now support “leading companies to explore building NFT exchanges”.

The government intends to use NFTs as a tool for IP protection and is hoping for a head start in researching and promoting the “digitization of assets like NFTs, the global circulation of digital intellectual property, and the digital authentication of ownership”.

By the end of 2025, Shanghai wants to see an increase in the value of its digital economy by RMB 3tn ($446 bn).

The guidelines in the Five Year Plan state that Shanghai will be one of the first Chinese cities to test NFT digital assets and industries by exploring and establishing an NFT trading platform.

Alongside the inaugural platform, the guidelines say the city will explore metaverse-related businesses including virtual idols, 3D scanning, virtual live shows and other means of digital entertainment.

NFTs haven’t always been encouraged in China, and such exploration is a turnaround from the tightened rules surrounding digital assets.

In April, China’s financial industry associations prohibited the use of NFTs for securitization and said that they must not be traded with cryptocurrencies, which are illegal in the country.

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Updated: 07/14/2022 — 17:00