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China Issues Warning against NFT Market in the Country

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According to the latest reports, the top financial watchdog in China has issued a warning for precaution.

Also, it has mapped out guidelines for the use of Non-fungible assets (NFTs).

nft

Source: Yahoo

As per the official announcement by the prosecutors, the national agency is seriously attentive to the increase of non-fungible tokens.

Since it is capable of causing financial risks, network security breaches, and management risks, and promotes legal concerns.

China’s viewpoint on cryptos has been a thing of intrigue and speculation.

In 2021, China banned banks from rendering services connected to cryptos and mounted pressure on local cryptocurrency exchanges.

Also, the country’s key national agency which is in charge of the legal prosecution issued a warning.

The warning was against utilizing NFTs (non-fungible tokens) and it also mapped out a series of guidelines that requires compliance.

Are NFTs Similar to Cryptos in Features?

On 17th May 2023, China’s major financial watchdog, the Supreme of the People’s Republic of China issued warnings.

READ ALSO: NSIA To Invest $1 Billion In Renewable Energy and Healthcare

It cautioned that NFT collections which are digital collectibles that share “the features of virtual assets” are under the ban in China.

Following the warnings, the agency set up its guidelines on how to treat NFTs.

It also made suggestions for upgraded risk analysis and decision-making to serve as a fair punishment for offenses.

Is there A Possible NFT Ban In China?

Through non-fungible tokens, both real and virtual goods can hold ownership history stored and verified on a blockchain.

However, Chinese prosecutors are contending the fact regarding digital art.

“After all, digital art can be circulated and copied and owners cannot fully enjoy the ownership,” says the agency.

Moreover, the agency explained that since NFTs are still a new blockchain application, it still has room for development.

READ ALSO: Coinbase Considers A Singapore Presence Amid US SEC Torments

Thus; there are doubts about whether the country will outrightly ban the NFTs or look for a method of regulating them in a controlled manner.

While the NFTs market develops, global observers are seriously watching China for development since its decision will likely impact the wider NFT ecosystem.

Considering China’s established opposition to cryptos, the country is supposedly exhibiting a renewed interest in using blockchain technology to broaden its digital infrastructure.

At present, China has presented its particular CBDC and it has become quite effective.

 

 

 

 

 

 

 

 

 

 

 

 

 

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