A ‘bad news’ from China for crypto and NFT marketplace

Some Chinese internet and tech giants have signed an initiative to prohibit digital collectibles (NFTs) and crypto, along with a promise not to set up secondary marketplaces.

What does the document state?

As per the document signed by the biggest tech companies of China, platforms that sell digital collectibles shall need original-name verification of those who sell, issue, and purchase the assets and just foster legal tender as the settlement currency and denomination.

What else is added to the document?

The document added that don’t comprise financial assets or unlicensed financial items, such as insurance, securities, precious metals, and credit, in blockchain-supported goods.

What led to the banning of NFTs?

This year in April, the China Banking Association, the National Internet Finance Association of China, and the Securities Association of China issued a joint statement to prohibit the use of non-fungible tokens in the issuance of financial assets.

What does the new initiative tend to do?

The latest initiative called on tech giants not to establish a centralized marketplace for matching, bidding, or anonymous NFT trading.

What is the hype all about?

The Chinese government prohibited Bitcoin mining in July of the previous year. The nation prohibited all crypto transactions last September and banned foreign cryptocurrency exchanges from working within the nation in 2018. It has plans to introduce its own CBDC (central bank digital currency) known as the (e-CNY) digital Chinese Yuan.  

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