NFTs in focus for a group of Chinese regulatory bodies. egreechee reports.
In today's statement, the three associations said that NFTs have the potential to promote"the digitalization of industries and digital industrialization," but warned against financial risks related to hyping the assets, money laundering, and other illegal financial activities.
Chinese authorities have previously called out financial risks resulting from hype and speculative trading as reasons for cracking down on crypto more broadly. The associations listed six behavioral principles to be followed: NFTs do not represent underlying assets like securities or precious metals; the non-fungibility of the tokens mustn't be weakened through methods like dividing them so that the distribution mechanism doesn't change; centralized trading shouldn't be provided; pricing and settlement of NFT transactions shouldn't include cryptocurrencies; platforms must preform real-name authentication and anti-money laundering;...
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