China plans to draw a clear line between cryptocurrencies and non-fungible tokens (NFTs), much the same way it did with its digital currency efforts, before the US crackdown. cryptography in the country harms the local NFT industry.
The Blockchain-based Service Network (BSN), a government-backed blockchain project in China, is working on infrastructure that would help businesses and individuals build platforms and applications to manage NFTs, the South reported. China Morning Post.
Officially called BSN-Distributed Digital Certificate (BSN-DDC), the project aims to support the deployment of unencrypted NFTs by offering application programming interfaces for the development of user portals and applications where fiat currency would be the only means of payment.
Emphasizing that NFTs have no legal issues in China as long as they are not used with Bitcoin (BTC) or other cryptocurrencies, CEO of BSN tech support provider Red Date Technology Yifan He said. that the upcoming infrastructure would use an open and permissioned blockchain to enable an on-chain governing body.
“Public channels cannot be operated legally in China,” he told Cointelegraph, adding that credible, low-cost infrastructure is desperately needed to host all NFTs in China. Without a dedicated national NFT infrastructure, NFTs can only be deployed on “untrusted” private channels in the country, the executive added.
By allowing a centralized entity to govern the infrastructure and intervene in the event of illegal activity, Red Date plans to create a compliant NFT platform entirely separate from the usual profile of crypto.
He noted that Red Date is working with all DDC project partners to make the network as transparent as possible, while remaining compliant with Chinese regulations and laws. All gas charges on the BSN-DDC network are paid in fiat currency.
“We will provide services to NFT companies in Hong Kong, which means that if there is international activity involving the issuance of NFTs in China, they can certainly choose to use the BSN-DDC network through our Hong Kong gateway. .”
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China Mobile, China UnionPay, and the state-owned State Information Center support BSN’s NFT infrastructure. The BSN-DDC will integrate 10 blockchains including the adapted version of Ethereum and Corda as well as WeBank’s Fisco Bcos, he said.
Last year, Red Date Technology signed an agreement with Turkish consulting firm Turkish Chinese Business Matching Center to launch two international BSN portals in Turkey and Uzbekistan.
As Cointelegraph reported, the new portals will allow blockchain developers in Turkey and Uzbekistan to build blockchain applications as a service using the global BSN portal hosting major blockchains like Ethereum network, Algorand, Polkadot, Tezos , ConsenSys Quorum, Corda and others. .