What: The blockchain market in China is very regulated, causing it to be disconnected with the rest of the world.

Why it is important: Although crypto and NFT produced in China may not be able to transfer to the rest of the world, brands should not overlook the market as a potential to experiment with the blockchain market.

China’s tech giants are jostling for position in the rapidly evolving space for unique digital assets authenticated and minted using blockchain technology.

• JD.com, Alibaba, and Tencent are fighting to have a leading position in the “digital collectible platform” market.
• Bytedance, Baidu, Bilibili, NetEase, and Xiaomi stake claim in the metaverse (joining global players such as Meta, Alphabet, Microsoft, and Apple)

While China’s Web 3.0 activity seems very basic, there is not an easy bridge between China and the rest of the world. China banned crypto mining and trading in 2021, and only allows government approved blockchain technology in the country. Along with the release of the digital yuan, China is not aligned with the global NFT market (in terms of transparency and openness).

NFTs are still new in China, and there are not many set regulations around them, making them risky. There is currently no risk-free for purchasers to trade or resell badges within China, as there might be penalties.

Although NFTs in China are not fluid with the global market, it could still be worth it for brands to create China-specific digital collectibles. At the moment, NFTs are seen as the next thing in fashion, so they should not be overlooked in the market.

China’s Parallel NFT Universe: A Guide for Fashion