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Arts & Communication Blockchain and royalties in China’s art market

intersects with the nation’s art market and regulatory while maintaining financial security and stability. As of
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landscape. This exploration offers valuable perspectives the first half of 2020, there were 1309 companies providing
on the global implications of digital innovations in art blockchain services in China. 122
commerce. The application of blockchain technology in China’s regulatory landscape is particularly unique. The
the art market presents China with a special set of potential legal landscape for blockchain technology exemplifies a
as well as obstacles, given the country’s complex web of dynamic interplay between stringent controls and strategic
governmental regulation and technological innovation. encouragement. At the national level, the People’s Bank of
This section explores how the strict regulatory systems that China took a cautious approach to the financial instability
oversee the Chinese art market interact with blockchain’s linked to digital currencies in 2017 by outlawing initial coin
transformative potential. This section aims to investigate offerings and preventing local cryptocurrency exchanges
the present status of blockchain technology in China, with from functioning within the country. However, this did
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particular attention to its use in digital art transactions not hinder blockchain technology development. Shortly
and the establishment of resale royalties. The analysis after, the Ministry of Industry and Information Technology
will consider the cultural and legal complexities that are launched the Trusted Blockchain Open Lab, which
specific to the Chinese environment.
focuses on blockchain technology without involvement
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4.1. In-depth analysis of blockchain potential in the in cryptocurrencies. Concurrently, Chinese blockchain
Chinese art market regulations are rapidly evolving, with both national and
provincial governments actively promoting blockchain
Section 4.1 introduces China’s blockchain landscape, development. Key regulations include the “Provisions on
marked by a strategic emphasis on practical applications the Administration of Blockchain Information Services,”
over speculative trading. The country’s approach illustrates requiring blockchain service providers to register with
a commitment to leveraging technology for economic the government, ensuring compliance and security.
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development while navigating regulatory challenges. As Provinces, such as Shanghai and Guangdong are leading
we explore China’s evolving blockchain regulations, we see the charge in establishing blockchain innovation zones.
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a balancing act between innovation and control, reflecting These regional efforts are integral to China’s strategy,
a strategic approach to harnessing technology’s potential showcasing a decentralized approach that aligns with
within a complex legal and social framework. China’s digital the national ethos of technological progression within a
collectibles market, distinct from the global NFT scene, stable financial environment. This regulatory duality
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highlights the country’s innovative path in integrating facilitates a fertile ground for blockchain innovations
blockchain with cultural heritage, showcasing a unique tailored to regional economic and social needs, ensuring
blend of tradition and technology. By providing a detailed that the technology’s deployment is in harmony with
analysis of China’s engagement with blockchain and digital China’s overarching regulatory principles. Such provincial
collectibles, Section 4 sheds light on the nuanced ways in initiatives are integral to the decentralization of innovation
which technology and art intersect in different cultural and within the parameters of national standards, fostering
regulatory environments, enriching our understanding of a cohesive yet flexible blockchain ecosystem across the
the global art market’s future.
country. 125
4.1.1. Current status of blockchain development in 4.1.2. China’s NFT and digital collectibles landscape
China
While China’s blockchain application in the art market
China’s current blockchain ecosystem is heavily directed currently focuses on primary sales without a developed
toward practical applications rather than speculative
trading of cryptocurrencies. The government, recognizing secondary market, this context offers a unique perspective
the transformative potential of blockchain across finance, on the potential and challenges of implementing blockchain
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supply chain, and intellectual property management, for resale royalties under strict regulatory frameworks. By
has championed the technology as a bedrock for digital examining China’s approach, we gain insights into how
blockchain technology might evolve to support artists’
transformation while eschewing the risks associated with
digital currencies. Blockchain applications in China are rights in jurisdictions with similar regulatory constraints,
thus deeply intertwined with the real economy, with the pointing toward future developments that could bridge
government’s supportive stance enabling a fertile ground for these current gaps.
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innovation within a controlled regulatory environment. The legal landscape for blockchain in China has evolved
This strategic emphasis on applications over trading aligns significantly, marked by key regulatory interventions.
with the broader policy of digital economic development Initially, in 2013, the “Notice of the People’s Bank of China

Volume 3 Issue 1 (2025) 15 doi: 10.36922/ac.2875