First, the entities went against digital assets; now, the associations revealed various warning statements linked to NFTs.
Non-fungible tokens, NFTs, have been an explosion worldwide and in all sectors. From sports and art to movies and the political environment, every single industry is including these collectibles as a way to consolidate their economy.
China couldn’t avoid the crescent event, and it got reported that the 2022 Asian Games that would take place in Hangzhou will sell torch NFTs, supported by Alipay.
However, not everyone is happy regarding these freedoms of NFTs. The China Internet Finance Association, the China Association for Banks, and the Chinese Securities Association revealed a statement highlighting their desire to suppress the trends of non-fungible tokens.
They intend to get supported and securitized and set a border to combat the risk of illegal financial activities linked to the items.
The Associations Released a Statement
The statement mentions that the NFT market in our country has kept expanding its dominion in recent years. As an improved application linked to Blockchain technology, NFT has demonstrated a vast value in helping the crypto economy model grow and encouraging the expansion of the cultural and creative environment.
On the other hand, there are some constant risks such as speculation, money laundering, and illegal trade that appear to worry the authorities.
The Association put Forward the Following Proposals on NFTs
Adhere to integrity and innovation to boost the real economy, allow the possibility to opt for application scenarios reasonably, set standards on applying Blockchain technology, and become a vibrant actor within the NFT environment by encouraging industrial development and digital industrialization.
The proposal also makes sure that the value of NFT products gets fully backed up, guides consumers to use their resources reasonably, and helps prevent inflation.
It also builds a shield to cover the intellectual property rights of the underlying items and support genuine digital creative and cultural works. True, assertive, and total disclosure of NFT product information protects consumers’ right to acknowledge, choose, and go through trusted and confident transactions.
The association wants to stop the securitization trend of NFTs because this measure would strictly prevent the risk of suspicious and illegal financial behavior, representing a potential danger to the economic system.
Called to Resist Speculation
It concludes by warning consumers about setting up proper consumption concepts, enhancing their self-protection awareness, consciously resisting NFT speculation, being aware of the situation, staying away from NFT-related illegal financial activities, and effectively shielding their property.
Critics, residents, and people with knowledge of the case confirmed that with this, the Chinese government is not saying anything new since, in previous years, it presented these same prohibitions and is simply remembering it in light of the fluctuations seen in recent weeks.
By: Jenson Nuñez
