Chinese Tech Giants Urge NFT Regulation to Avoid Speculation

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by KnowESG

The Chinese IT firms Ant Group, Tencent, and have launched a self-discipline drive to reduce NFT market speculation.

The Digital Collection Industry self-discipline project was announced on June 30 at the "China Digital Cultural and Creative High-Quality Development Forum," organised by the China Cultural Industry Association in Beijing.

During the forum, participants from various creative sector fields collaborated to respond to the National Digital Strategy released by the Central Committee of the CPC and the State Council.

According to a statement by the China Cultural Industry Association on Thursday, the companies submitted a 14-article proposal. In the outline, they explain that NFT platforms should be required to possess legal qualifications, ensure the security and controllability of blockchain technology, adhere to the real-name system, enhance the development of intellectual property protection capabilities, prevent financial and malicious speculation, and promote rational consumption.

Jiang Guofei, vice president of Ant Group, said:

"As the earliest company to carry out NFT-related business, we actively responded to the association’s initiative on self-disciplined development. Ant also started the “three nos” of digital collections and related products. Risk control design and remind consumers of fraud risks. We hope to work together with all parties to form industry consensus and norms and keep integrity and innovation."

While Beijing has yet to enact regulations for NFTs, Chinese state media have criticised the sector with vehemence.

Due to a lack of regulatory certainty, Yucang, a Chinese NFT exchange, said earlier this week that it would be repurchasing assets. If users of official accounts on WeChat, a prominent Chinese messaging service, are found to be flipping digital treasures, they face disciplinary punishment, including permanent bans.

Chinese enterprises frequently use the term "digital collectibles" to avoid making direct reference to non-fungible tokens since the NFT industry continues to face a harsh regulatory environment.


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