Does an NFT trading platform require a license? Understand the uses of NFTs

Does the NFT trading platform require a license? NFT (non-fungible token), as an emerging form of digital assets, has attracted much attention in recent years. However, with the rapid development of the NFT market, some controversies have begun to surface. In this emerging field, the need for a license has become a hotly debated issue. Here, php editor Banana will introduce the role of NFT to everyone, and discuss whether the NFT trading platform needs to obtain a license.

# Does the NFT trading platform require a license?

The following is a summary of qualification licenses. Digital collection platforms should determine the required licenses based on the type of business.

(1) Blockchain Information Service Registration

The chaining and trading of NFTs rely on blockchain technology. According to the "Blockchain Information Service Management Regulations", the registration procedures must be completed through the Blockchain Information Service Registration Management System of the Cyberspace Administration of China (https://bcbeian.ifcert.cn/index). If the platform is also a blockchain information service provider (for example, providing on-chain services), it also needs to fulfill obligations such as user information authentication.

(2) Value-added telecommunications business license

NFT digital collection trading platform is a platform for operating Internet information services. If it adopts the platform transaction model (that is, the third party settles in), it needs to obtain value-added Telecommunications business license, also known as ICP certificate.

(3) EDI Certificate: Online Data Processing and Transaction Processing Business

If the NFT digital collection platform adopts the platform model to operate externally, that is, it does not directly participate in the issuance and trading of digital collections, but is operated by If third-party merchants provide services (similar to Tmall model), they need to apply for an EDI certificate. And if the NFT platform directly issues and sells NFT (similar to JD.com’s self-operation), there is no need to apply for an EDI certificate.

(4) Work copyright (authorization/original acquisition)

Principle: NFT platform operators must obtain authorization from the copyright holder of the work.

Introduction to the role of NFT

NFT brings opportunities to gamers and card collectors. Axie Infinity, a Pokémon-like cartoon character sales site, is considered one of the 10 most popular crypto collecting platforms, CryptoSlam reported.

According to CoinDesk, the site had more than 10,000 monthly active users in 2020, making it the most popular game on Ethereum.

Other NFT collectibles based on arcade games such as Street Fighter are also growing in popularity - generating more than $1.5 million in just a few weeks after the site launched, according to CryptoSlam. Generated over $600,000 in revenue in the past month.

NFT games are expected to continue to grow. In February, Altitude Games launched a blockchain racing game called Battle Racers on Arkane Market, which has more than 100,000 blockchain game players.

Non-fungible tokens are the leaders of the current digital revolution. They have been using various development methods to upgrade themselves. NFTs are unique digital assets developed based on blockchain technology and cannot be interchanged or copied in any way. These digital tokens represent assets such as images, domain names, trading cards, videos, artwork, and more. These unique digital tokens are traded on platforms called NFT markets. The NFT market initiates NFT transactions in a decentralized manner. There are many NFT markets available in the digital space, and users choose the best ones in the market.

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