It sounds like more clarity will be coming to the Chinese non-fungible token market. This comes after The China Cultural Industry Association, Tencent, the Ant Group, Baidu, and others jointly issued a “self-disciplined development proposal” for the “digital collectible industry.” This is a rebranded term used for NFTs in China to eliminate the financial aspect of these types of assets.
The 14-page document said that platforms selling these collectibles “shall require real-name authentication of those who issue, sell, and buy” these assets. Furthermore, these platforms can “only support legal tender as the denomination and settlement currency.” The platforms must also hold relevant regulatory permits, ensure the security of blockchain technologies, enforce user identity checks, protect IP, ban financial speculations, and promote rational consumption amongst users.
It’s possible that this proposal will inject new life into the Chinese cryptocurrency and NFT markets. Back in September, China outlawed crypto trading across the country. Hopefully, this is a sign that NFTs could still flourish in the market for years to come.
(All information was provided by South China Morning Post and TechCrunch [1,2])
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