China’s Financial Association Announces Strict NFT Rules, Banning Crypto Prices

Three Chinese financial associations are China Bankers Association, China Securities Association. and the China Online Finance Association jointly announced new rules to focus on regulating the NFT industry.

In the main content, it can be concluded that, although the NFT shows some potential value in enhancing the digital economy model and promoting the development of cultural and creative industries. But at the same time, the association sees hidden risks such as speculation, money laundering and illegal financial activities.

Chinese Financial Association issues tougher rules on NFTs.

The Chinese Financial Association issues tougher rules on NFTs.The Chinese Financial Association issues tougher rules on NFTs.
The Chinese Financial Association issues tougher rules on NFTs.

Therefore, to prevent financial risks Protect the legitimate rights and interests of consumers. by the China Bankers Association, the China Securities Association And the Financial Association has jointly called for the following rules:

  • NFT may not be used as a financial product, securities, bond, loan, insurance, or other financial asset.
  • Do not issue NFT in pieces or in bulk. To facilitate the raising of ICO coins that are hidden in the form of NFTs.
  • Do not operate as an NFT exchange.
  • Do not set NFT prices in cryptocurrencies such as Bitcoin, Ethereum.
  • Financial institutions are prohibited from providing financial support for others to invest in NFTs.
  • Related platforms should increase identity verification (KYC) measures and keep records of customer transactions to prevent money laundering (AML).

Several tech giants have already taken a stand in accepting the new rules of Chinese regulators. Ant Group companies Bilibili, Tencent and Alibaba have built a government-licensed blockchain network. This allows creators to create and sell their NFT portfolio, but is limited to designated participants and is isolated from the Ethereum network.

In addition, the transaction will also be exchangeable for Chinese Yuan currency only and the Company will not allow NFT to be resold in the secondary market. such as OpenSea’s platform and other leading NFT markets.

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