Cryptocurrency may be illegal in China, but that doesn’t mean NFTs have to be. China plans to separate the infrastructure used for cryptocurrencies from that used to create NFT so that its crackdown on cryptocurrencies does not harm the country’s NFT industry, a report from the South China Morning Post reveals.
To achieve this, the Chinese government-backed Blockchain-Based Service Network (BSN) is developing a new blockchain infrastructure project that allows individuals & businesses to develop & manage NFTS without using developed infrastructure for cryptocurrency.
In an interview with Cointelegraph, Yifan He, CEO of BSN tech support provider Red Date Technology, suggested that managing NFTs through the new system will allow individuals & businesses to avoid legal issues associated with cryptocurrency. in China.
In May last year, China announced that it was introducing a nationwide ban on cryptocurrency ownership & mining. “Public chains cannot be operated legally in China,” he said. he told Cointelegraph. Without the new system, NFTs could only be executed on “unreliable” private channels, he explained.
Separate NFT from Crypto
The official name of new infrastructure is BSN Distributed Digital Certificate (BSN DDC). This will allow the development of user portals & applications where traditional fiat currency can be used to purchase NFTs.
All of this will separate the NFT industry from its previously inextricable link with cryptocurrencies. This is because NFTs are developed using the same blockchain infrastructure used for cryptocurrencies. The first NFTs were developed using the Ethereum infrastructure & other cryptocurrency platforms have since added their own NFT features.
The BSN DDC infrastructure will integrate 10 blockchains, including Ethereum & WeBank Fisco Bcos. According to Cointelegraph, Red Date Technology has also signed an agreement with Turkish consulting firm Turkish Chinese Business Matching Center to launch 2 international BSN portals in Turkey & Uzbekistan that will allow developers to create blockchain as a service applications.