A month before crypto was banned, China hosted the world's first major crypto art exhibition by opening galleries in 798 districts of Beijing.
But in May 2021, Chinese regulators once again shook the market by banning crypto trading and mining, further shaking the non-fungible token (NFT) community.
However, a few months later, NFTs were again considered safe from the regulations because there was still no clear classification of them as potentially risky financial instruments.
Although China bans crypto trading and mining, but at least it can become a hub for NFT art.
However, it cannot be bought with crypto and used as a speculative investment, unlike what traders often do in other countries.
As a result, big tech firms such as China Ant Group and Tencent are changing NFT titles to digital collectibles in a move to differentiate the product from its global crypto counterparts.
In contrast to the Ethereum blockchain, the collection in China is built on a blockchain that is only permitted including being amended by the authorities.
This is because, governments and companies are trying to curb NFT funding in order to stop the popular speculative investment that happened during the crypto market crash.
In fact, laws to prohibit the use of this type of technology will be enacted to create a regulated type of financial service, commented Yifan He, CEO of blockchain development firm Red Date Technology.
