The future of non-fungible tokens is becoming clearer in China as Chinese tech giants come together to set early industry standards.
The China Cultural Industry Association, together with Tencent, Ant Group, Baidu and others, co-published a “self-disciplined development proposal” for the “digital collection industry.” side.
Trade associations are not regulatory, but can help develop standards and best practices within the industry. The China Cultural Industry Association was established with the permission of the State Council and, according to the information on its website, counts Alibaba and Tencent among its members.
Chinese NFT enthusiasts are watching the direction of regulation from above. After China outlawed cryptocurrency trading, there was speculation that the purest form of NFT (which trades freely and anonymously with cryptocurrencies on the global public blockchain) would not be allowed domestically.
That seems to be the case. In April, the Chinese Financial Association suggested that NFTs should not be used for securitization or traded in cryptocurrencies.
China’s NFT industry could be one step closer to regulation as the country’s largest platform operator takes a stance. According to proposals issued by Tencent, Ant Group, etc., digitally collectable platforms retain relevant regulatory permits, secure underlying blockchain technology, verify user identity, and intellectual property. We need to strengthen protection and categorically ban financial speculation. Promote rational consumption among users.
Chinese tech companies have tested water bodies before NFT regulations were enacted. Giant companies from Tencent, Ant Group to Baidu have all launched digitally collectable marketplaces built on a private consortium chain. Users can only purchase in the Chinese fiat currency RMB, and secondary transactions are widely banned to prevent price spikes.
One company decided to take its ambitions beyond China to investigate the full extent of NFTs. In April, Bilibili, the head of China’s user-generated video streaming site, became a Singapore-based company. Launch an Ethereum-based NFT collection Inspired by the site’s brand assets.