The Self-Regulatory organizations overseeing the banking and security industry within China are urging members to halt the adoption of NFTs.
According to a report from Forkast, self-regulatory bodies in China are urging their members to “resolutely curb” the “financialization and securitization” of NFTs.
Although 3 national-level organizations believe NFTs show the potential to boost cultural industry development, risks outweigh the speculation, money laundering and illegal activities said the Chinese regulators.
A large publisher within China called ‘The Economic Daily‘ believes that “digital collectibles” are in urgent need of regulation, as there is a layer of risk for domestic consumers.
China has not yet clarified the regulations on trading NFTs within the country. “Before the regulatory mechanism is clarified, consumers are advised to treat it calmly and participate rationally,” states The Economic Daily.
NFT Recognition In China
Multiple companies and organizations in China recognize NFTs as merely “digital collectibles”. This comes after the denouncement of NFTs from state media.
State media believes that “it is not enough if digital collections are only regarded as cultural and creative commodities traded online and supervised by market supervision departments and intellectual property departments…digital collections have commodity attributes, currency attributes, securities attributes, etc., and their supervision involves multiple departments, and it is urgent to establish a joint supervision mechanism.”
Associations have persisted that venues to trade NFTs must not be facilitated, the same members should also stay away from investing in these assets and providing financial support for others to do so.
