Giải trí

Chinese securities and financial institutions propose to limit NFT-Information Technology

Friday, April 15, 2022 09:10 AM (GMT+7)

Three organizations representing China’s securities, banking and Internet finance industries have issued statements on the use of NFT in the industry, with various hedging limits.

Chinese securities and financial institutions propose NFT limit - 1

Securities Association of China (SAC), Finance Association Internet China (NIFA) and China Bankers Association (CBA) have issued an official statement on the limitation of NFT usage. According to this statement, NFT will not be used for securitization or traded for cryptocurrency.

The joint statement of the three organizations said that the main problem of the NFT is the financial risk it brings and warned about the risk of price inflation, money laundering and many other illegal financial activities related to NFT.

However, the three organizations also acknowledge the benefits NFT can bring to China’s digital and creative economy, such as allowing artists to have greater control over their work. .

To mitigate financial risks from NFTs and take advantage of the technology behind this ownership, SAC, NIFA and CBA have proposed a set of rules for the financial industry. Accordingly, the assets behind the NFT should not include bonds, insurance, stocks, precious metals and other financial assets.

Platforms should also not provide NFT centralized transaction services and should have thorough identity verification and transaction recording to prevent money laundering.

In addition, the NFT is not allowed to transact in cryptocurrencies, and the irreplaceability – the heart of the NFT – must not be undermined with the purpose of indirectly facilitating the first sale of cryptocurrencies. initial coin offering (ICO). Financial institutions and entities are also not allowed to provide direct or indirect financial support for NFT investments.

Previously, China banned ICOs, trading and mining cryptocurrencies. The removal of the ability to use NFT in financial transactions will further move China away from the wave of cryptocurrencies and NFTs in many other countries around the world.

Even so, the Chinese government still sees blockchain technology as a key infrastructure for building a digital economy. Big tech corporations like Bilibili, Tencent, and Alibaba have all built licensed blockchains separate from the Ethereum network, in which users can create and sell their work.

Transactions on these blockchains are only made in RMB; participants also do not allow resale on other exchanges such as OpenSea. Chinese corporations also use the term “digital collectibles” to separate it from the term NFT used in the crypto world.

You are reading the article Chinese securities and financial institutions propose to limit NFT-Information Technology
at Blogtuan.info – Source: 24h.com.vn – Read the original article here

Back to top button