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Cryptocurrency might be illegal in China, but that doesn’t mean non-fungible tokens (NFTs) have to be.

China is planning to separate the infrastructure used for crypto from the one used to create NFTs so that its crackdown on cryptocurrencies doesn’t harm the country’s NFT industry, a report from South China Morning Post reveals.

To do this, China’s government-backed Blockchain-based Service Network (BSN) is developing a new blockchain infrastructure project that allows individuals and businesses to develop and manage NFTS without using infrastructure developed for cryptocurrency.

In an interview with Cointelegraph, Yifan He, CEO of BSN’s tech support provider Red Date Technology suggested that managing NFTs via the new system will allow individuals and businesses to avoid legal troubles associated with cryptocurrency in China.

In May last year, China announced that it was introducing a nationwide ban on the ownership and mining of cryptocurrency. “Public chains can’t be legally operated within China,’ He told Cointelegraph. Without the new system, NFTs could only be managed on “unreliable” private chains, he explained.

Separating NFTs from crypto

The official name of the new infrastructure is the BSN-Distributed Digital Certificate (BSN-DDC). It will allow for the development of user portals and apps where traditional fiat currency can be used to purchase NFTs.

All of this will separate the NFT industry from its previously inextricable link to crypto. That’s because NFTs are developed using the same blockchain infrastructure used for crypto. The first NFTs were developed using the Ethereum infrastructure, and other cryptocurrency platforms have since added their own NFT features.

The BSN-DDC infrastructure will integrate 10 blockchains, including Ethereum and WeBank’s Fisco Bcos. As per Cointelegraph, Red Date Technology has also signed an agreement with Turkish consultancy firm Turkish Chinese Business Matching Center to launch two international BSN portals in Turkey and Uzbekistan that will allow developers to build blockchain-as-a-service applications.

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