China Is Taking A Cautious Approach To NFTs

Although China is not yet receptive to NFTs, the country does not seem to be interested in seeking a total ban on them soon. In reality, it has released measures intended to warn its citizens about the risks associated with blockchain technology.

Regulatory Bodies Release Guidelines

For the NFT sector, a collaborative team of Chinese regulators has released regulatory efforts to curtail the activities in the space. The organization outlined a slew of activities with which industry players should comply. While the authorities applauded the unique elements and capabilities, they also expressed concern about their dangers.

Chinese regulatory bodies such as the China Banking Association, the Securities Association of China, and the China Internet Finance Association have joined forces to launch a cooperative project to reduce the risks attached to NFTs. While appreciating the progress that blockchain tech has brought, the group expressed concern about “hidden dangers” associated with the technology.


Bitcoin Revolution is a crypto trading tool for investing in the crypto market with an %88 average win rate on trades and is the #1 trading software for crypto traders from all around the globe in 2022. Try it For FREE Today. 


China’s Authorities Take A Cautious Approach To NFTs

In contrast to their strong position on digital currencies and mining, the country’s regulatory organizations seem to be more amenable to NFTs, at least temporarily.

The three associations announced a joint effort on NFTs on the 13th of April, which the Chinese government supported. Despite noting that the state’s NFT marketplace has “continued to rise” and recognizes the “innovative usage of blockchain,” the governing bodies have ordered compliance with various initiatives designed to mitigate the perceived risks associated with the technology.

The first plan underlined the need to promote innovation while also urging that advancement be conducted with transparency for the economy to reap the benefits. Following that, there was a clarification of what this meant, including recommendations like the standardization of blockchain applications.

Secondly, the authorities emphasized the need to approach technology with the nature of humans in mind, like the desire to speculate and fantasize. Measures were introduced to keep the rising marketization and monetization of NFTs in check and avoid criminal activities.

In the next section, the organization outlines six standards of conduct that market players should adhere to. NFTs does not include underlying assets like securities or precious metals and therefore do not allow for fractional ownership. Furthermore, centralized trading for Non-Fungible Tokens would be prohibited. The authorities also noted that cryptocurrency should not be utilized for the bidding and payment of NFTs before they listed AML (Anti-money laundering) and KYC (know your customer) measures as criteria. 

Finally, the organization said that NFTs should not be supported financially. The organizations also urged customers to display individual risk management measures, such as refraining from wild speculation and adequately safeguarding one’s digital assets. In line with the government’s policies, WeChat, a popular social platform, recently removed NFTs from the forum.


start trading

Best Forex World is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Some of the content on this site (not all) is paid content that is not written by our authors and the views expressed do not reflect the views of this website. Any disputes you may have with brands or companies mentioned in our content will need to be taken care of directly with the specific brands and companies. The responsibility of our readers who may click links in our content and ultimately sign up for that product or service is their own. Cryptocurrencies, NFTs and Crypto Tokens are all a high-risk asset, investing in them can lead to losses. Readers should do their own research before taking any action.


Previous post Three African countries To Implement Crypto and Blockchain Solutions
Next post Louis Vuitton Launches Raffle Draw For New NFTs