The Communist Party of China has called for NFTs regulation to protect investors and China Citizens. The China Communist Party made this revelation in a statement in the Economy Daily.
The party strongly recommends that the government should desist from approaching the NFTs sphere as a creative market. Instead, the government should impose stern laws with regular approach toward digital assets and currency.
Additionally, against general opinion in China, the Communist Party believes that NFTs are not cultural aesthetics. The party further emphasizes that the increasing speculations and risks attached to NFTs are worrisome. Therefore, the government must do well to curb the dangers it poses through well-structured regulation.
Also, the statement criticized exchange outlets that engage in the retail of NFTs. The Communist Party of China further warns buyers that retailers may halt trading activities without prior notice. Thus, making away with their money and digital assets.
However, the call for NFTs regulation by China Communist Party seems hypocritical in nature. Recently, state-own media organizations launched their respective NFTs trading outlets. Organizations like People’s Daily, the authorized publication of the China Communist Party, and Shandong TV have their trading outlets.
Nevertheless, Prominent Technological Firm, Alibaba has device a self-regulatory mechanism to curb the retail of NFTs. Alibaba enforced a mandatory six months wait for investors before they can sell-off their NFTs.
The Situation of Crypto and NFTs in China
The situation of Crypto is under the dark cloud in China, with the Chinese government imposing strict regulations on it. Nonetheless, the government permits Chinese Citizens to own NFTs as long as it doesn’t aid or involve crypto transactions.
In China, NFTs have enjoyed a warm reception from the government and big firms. Nevertheless, there are concerns about the retail of NFTs as a speculative mechanism. The recent statement by the Communist Party of China further confirms these worries.
Meanwhile, Chinese tech giants such as Alibaba and Tencent have overtly emphasized their commitment to protecting the industry.
Recently, the Chinese base Social media platform, WeChat banned numerous accounts due to their refusal to comply with the Chinese Government. The Chinese government made it mandatory that NFTs trading outlets must register before commencing operations.
Lastly, the effort emphasize the commitment of the government toward ensuring the growth of the industry and also to protect Chinese citizens.