The Chinese tech giant joins state-backed efforts to regulate digital collectibles by offering support for a “self-discipline initiative,” which ensures identity checks on users, adheres to the country’s ban on cryptocurrency, and protects digital assets. Stops speculation.
Tiptoeing in line with tech giant executives
According to a statement from the China Cultural Industry Association, a state-supervised organization, the initiative has received support from domestic tech giants such as Tencent Holdings, Alibaba’s Ant Group, JD.com, and Baidu, which have deep partnerships with digital collectibles. Is. in country.
Known for its anti-crypto stance, China refers to non-fungible-tokens (NFTs) as digital collectibles, supporting only the country’s legal tender, the yuan, as a settlement currency. The initiative reiterates such a stance and calls for veterans to follow a set of guidelines to aid regulatory efforts.
Under the 14 articles introduced by the initiative, digital collectibles platforms are expected to have relevant regulatory certification, strengthen intellectual property protection, advocate for real-name authentication, and avoid the establishment of secondary markets for speculative purposes.
The Alibaba-owned South China Morning Post, citing a source sourced from the blockchain industry in China, said the initiative “does not represent the government’s stance.” Rather, it is an industry-driven attempt to respond to previous guidelines issued by government-managed industry associations aimed at restricting “financialization of digital collectibles” through securities, insurance, loans and precious metals.
The rise of digital collectibles in China
Despite warnings issued by the government on the risks of digital storage, the number of domestic platforms providing services in such trading has increased five-fold from February to June.
Meanwhile, tech firms moving into this sensitive sector in China are less critical, as they tried not to cross the red line set by the authorities. As expected, they avoided using the term “NFT” to describe all digital collectibles, as regulatory authorities associate NFTs with speculation on cryptocurrencies.
Tencent and Ant Group have private and permissioned blockchains separate from global NFT markets, mostly built on layer-one blockchains like Ethereum, Solana, Flow, etc. In compliance with relevant regulatory scrutiny, the platform simply treats owners absent of their assets as digital gifts. financial speculation.
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