2 years ago
Eliza Gkritsi is CoinDesk's crypto mining newsman based successful Asia.
China's Internet Financial Association, the China Banking Association and the China Securities Association privation to "resolutely curb" the tendencies of non-fungible tokens (NFTs) to beryllium financialized and securitized, arsenic good arsenic bounds the hazard of amerciable fiscal activities related to the tokens, the radical said successful a statement published today.
Two of these 3 self-governing bodies astir 1 twelvemonth agone preambled 1 of the astir superior crackdowns successful China to day when they told their members that they are forbidden from conducting concern with crypto companies. Just days later, the State Council – the country's main medication assemblage – called for a crackdown connected crypto mining and trading.
In today's statement, the 3 associations said that NFTs person the imaginable to beforehand "the digitalization of industries and integer industrialization," but warned against fiscal risks related to hyping the assets, wealth laundering, and different amerciable fiscal activities.
Chinese authorities person antecedently called retired fiscal risks resulting from hype and speculative trading arsenic reasons for cracking down connected crypto much broadly.
The associations listed six behavioral principles to beryllium followed: NFTs bash not correspond underlying assets similar securities oregon precious metals; the non-fungibility of the tokens mustn't beryllium weakened done methods similar dividing them truthful that the organisation mechanics doesn't change; centralized trading shouldn't beryllium provided; pricing and colony of NFT transactions shouldn't see cryptocurrencies; platforms indispensable preform real-name authentication and anti-money laundering; financing enactment for investments successful NFTs shouldn't beryllium provided.
Despite China's combat against crypto, NFTs proceed to beryllium issed by large firms and adjacent government bodies. Back successful October, Ant Group and Tencent, 2 of China's biggest tech companies, renamed their NFT products to "digital collectibles," apt to region their offerings from NFTs and the associated marketplace hype.
Today's connection besides called connected consumers to support themselves by having the "correct depletion concept," resisting speculative investments and staying distant from amerciable financing activities.
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Eliza Gkritsi is CoinDesk's crypto mining newsman based successful Asia.
Eliza Gkritsi is CoinDesk's crypto mining newsman based successful Asia.
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