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- Although crypto exchanges were outlawed from operating in China in 2017, many people were able to utilize local bank accounts to conduct crypto-related transactions before the People’s Bank In 2021, China started tightening down just upon practice.
- Alibaba Group, a Chinese multinational e-commerce company with a market valuation of $272 billion, created an NFT marketplace that allows users to sell tokens representing copyright licenses.
- Other requirements included not enabling centralized transactions and not weakening the tokens’ nonfungibility by dividing ownership or batch creation, and carrying out token issuance finance under disguise, according to the proposed code of conduct.
We firmly advise customers to remain watchful and avoid NFT-related unlawful financial operations, the organization stated. The China Banking Association, the China Internet Finance Association, and the China Securities Association all published a united statement warning investors about the hidden risks of investing in nonfungible tokens or NFTs.
Blockchain Space Focused On NFTs
The three organizations announced initiatives aimed at encouraging innovation in the crypto and blockchain space focused on NFTs, as well as resolutely curb[ing] the tendency of NFT financialization and securitization to reduce the risks associated with illicit activities, in a statement released on Wednesday. Securities, precious metals, and other financial goods should not be considered by member banks, according to the China Banking Association.
Furthermore, cryptocurrencies such as Bitcoin (BTC), Ether (ETH), and Tether (USDT) should not be used for the pricing and settlement of NFT transactions; platforms should perform real-name authentication and adhere to Anti-Money Laundering regulations, associations, and firms in compliance should not invest in NFTs or provide financial support to others who do. Other requirements included not enabling centralized transactions and not weakening the tokens’ nonfungibility by dividing ownership or batch creation, and carrying out token issuance finance under disguise, according to the proposed code of conduct.
We solemnly call on consumers to establish proper consumption concepts, increase their self-protection awareness, consciously resist NFT speculation and speculation, be vigilant and stay away from NFT-related illegal financial activities and effectively safeguard their own property safety, the organizations stated. If any relevant illegal acts are discovered, they should be reported to the appropriate departments as soon as possible.
Company With A Market Valuation Of $272 Billion
Regulatory organizations based in China have previously issued public cautions about cryptocurrency investments, as well as urging member institutions to follow existing regulatory regulations involving digital assets. Although crypto exchanges were outlawed from operating in China in 2017, many people were able to utilize local bank accounts to conduct crypto-related transactions before the People’s Bank. In 2021, China started tightening down just upon practice.
In 2022, some Chinese social media networks, such as WeChat, withdrew from NFT platforms, ostensibly in anticipation of a government crackdown. However, in August 2021, Alibaba Group, a Chinese multinational e-commerce company with a market valuation of $272 billion, created an NFT marketplace that allows users to sell tokens representing copyright licenses.
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Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
