The official Shanghai Data Exchange has completed its inaugural digital asset issuance and transaction. Collaborating with local milk company Guangming, they issued a tradable limited digital asset named “Longyao Chasing Light, Yiding Guangming,” with a total quantity of 999 units.
This milestone marks Shanghai Digital Exchange’s compliance with regulations, aligning with the “Action Plan for Promoting Innovation and Development of the Data Element Industry Based on the New Track of the Digital Economy (2023-2025).” The move is hailed as a crucial step in integrating digital asset circulation with the real economy.
The “Action Plan for Promoting Innovation and Development of the Data Element Industry Based on the New Track of the Digital Economy (2023-2025)” is a comprehensive initiative unveiled by Chinese authorities to enhance the utilization of data as a productive force and to cultivate new industries and growth drivers.
The plan, announced by 17 government departments, including the National Data Administration (NDA), outlines several key objectives: accelerating the construction of data ecosystems, promoting the high-level application of data in 12 sectors spanning manufacturing, finance, technological innovation, and green and low-carbon development, enhancing the quality of data supply, strengthening data circulation environments, and reinforcing data security measures.
This initiative forms part of China’s broader vision to establish a “Digital China,” encompassing a digital economy and society. It aims to optimize resource allocation and stimulate the growth of new industries.
China has a significant and expanding digital economy, ranking as the world’s second-largest after the United States. In 2018, China’s digital economy constituted about 6% of its gross domestic product (GDP), slightly lower than the United States at 7%, Japan at 8%, and Korea at 10%.
Despite a complex relationship with cryptocurrencies, marked by a ban on trading and mining since 2021, cryptocurrency activity remains robust in mainland China. Chinese traders reportedly gained a net of $86 billion from crypto transactions between July 2022 and June 2023, as per Chainalysis.
In a single month last year, Binance, the world’s largest exchange, facilitated $90 billion in Chinese crypto trade, establishing China as its most extensive market. Particularly, a significant portion of China’s crypto activity occurs through informal channels like over-the-counter and grey market peer-to-peer businesses, with physical crypto exchange stores emerging in Hong Kong’s business and shopping districts.
