China’s Communist Party wants to regulate NFTs
The Economic Daily, a mouthpiece of the Chinese Communist Party, called for stricter regulation of “digital collectibles” as investors continue to speculate in non-fungible tokens (NFTs).
See related article: Ant Group, JD.com, Tencent pledge to resist speculation of ‘digital collectibles’
Fast facts
- The Economic Daily argued against treating NFTs as cultural and creative products, calling instead for the asset class to be regulated as a currency, commodity and/or a security.
- The phrase “digital collectibles” is a euphemism for “NFTs” as China frowns on speculation in the emerging asset.
- The article criticized NFT trading platforms for operating resale markets, warning buyers that the “rug could be pulled” anytime.
- Ironically this comes amid state-run television stations themselves launching NFT marketplaces.
- The People’s Daily, the official newspaper of the CCP, and Shandong TV have their own marketplaces with Shanghai Securities’ NFTs surging in second-hand sales.
- Meanwhile, China’s tech giants have self-regulated amid the regulatory uncertainty, with Alibaba imposing a 180-day lock-in before a resale.
See related article: WeChat bans NFT accounts, citing ‘crypto speculation’
