China’s stance on nonfungible tokens (NFTs) appears to be shifting, bringing a subtle yet significant change to its blockchain landscape. Xianyu, owned by Chinese tech giant Alibaba, known colloquially as “Bored Fish,” has decided to stop censoring “nonfungible tokens” in its search tool.
Moreover, it has resumed listing Topnod NFT collectibles, minted on Alibaba’s Ant Blockchain. This marks a departure from their previous approach, where Topnod digital collectibles were prohibited from secondary markets due to regulatory uncertainty, leading to a period of inactivity.
In December, the Chinese government announced its plans to launch an official NFT trading platform within the year, although it is still under construction. China’s relationship with crypto-related activities has been tumultuous, from once being the epicentre of Bitcoin mining to a nationwide ban in 2021. Despite the restrictive regulations, the Chinese Communist Party (CCP) has been working on integrating Web3 technology, with state-owned entities like China Daily newspaper revealing plans for an upcoming NFT marketplace.
While this partial lifting of the NFT ban suggests a possible softening of China’s stance, the path forward remains uncertain. Although it brings hope for NFT enthusiasts and blockchain supporters, the future of these digital assets in China remains veiled in regulatory ambiguity.
It’s worth noting that NFT regulations in other countries also lack clarity. The United Kingdom (UK) has faced criticism for imposing restrictions that could stifle NFT advancements, with regulators being accused of lacking knowledge. The United States (US), on the other hand, has failed to provide clear regulatory guidelines and has even prosecuted projects like Stoner Cats and Impact Theory for conducting NFT sales.