China intends to make a clear distinction between cryptocurrencies and nonfungible tokens (NFT) — much as it did with its digital currency endeavours — before the country's crypto crackdown affects the local NFT business. The Blockchain-based Service Network (BSN), a Chinese government-backed blockchain initiative, is developing infrastructure to let businesses and people build platforms and apps to handle NFTs, according to the South China Morning Post. The project, officially known as the BSN-Distributed Digital Certificate (BSN-DDC), intends to enable the implementation of non-crypto NFTs by providing application programming interfaces for the building of user portals and apps in which fiat money is the only payment mechanism.
Yifan He, CEO of BSN's tech support provider Red Date Technology, stated that the upcoming infrastructure would use an open, permissioned blockchain to enable an on-chain governing body, emphasizing that NFTs are legal in China as long as they are not used with Bitcoin (BTC) or other cryptocurrencies. “Public chains can’t be legally operated within China,” he said to Cointelegraph, adding that a reliable, low-cost infrastructure is urgently needed to host all NFTs in China. NFTs can only be implemented on “unreliable” private chains in the country without a dedicated, countrywide NFT infrastructure, according to the executive.
He stated that Red Date is collaborating with all DDC project partners to make the network as transparent as possible while adhering to Chinese norms and laws. Fiat money is used to pay all gas expenses on the BSN-DDC network. The CEO of BSN even added in a statement that “We will provide services to NFT companies in Hong Kong, which means if there is any international business involving issuing NFTs inside China, they definitely can choose to use the BSN-DDC network via our Hong Kong gateway.” BSN's NFT infrastructure is supported by state-owned China Mobile, China UnionPay, and the State Information Centre. According to him, the BSN-DDC would combine ten blockchains, including an adapted version of Ethereum and Corda, as well as WeBank's Fisco Bcos.
Red Date Technology secured a deal with Turkish consultancy company Turkish Chinese Business Matching Center last year to develop two international BSN websites in Turkey and Uzbekistan. According to Cointelegraph, the new portals will allow blockchain developers in Turkey and Uzbekistan to create blockchain-as-a-service applications using the global BSN portal, which hosts major blockchains such as the Ethereum network, Algorand, Polkadot, Tezos, ConsenSys Quorum, Corda, and others.
Hottest Crypto Casinos In The iGaming Industry