NFTs face regulation challenge in China

Chinese media outlet Jiemian reported that Ant Group and Tencent have changed the mention of non-fungible tokens (NFT) to “digital collectibles” on their platforms and websites.

So far, NFTs have not been included in the Chinese government’s regulations against cryptocurrency trading and mining. However, government agencies warn against using NFTs for market speculation. Last week, a state-owned technology park in Guangdong province warned people against a scam fueled by the NFT hype.

Problems of two firms with NFT

The two firms appear to be distancing themselves from the NFT. Tencent said the benchmark change reflects the company’s commitment to regulatory compliance, while Ant Group reiterated that it goes against the digital collectibles hype and market speculation.

Ant Group operates a celebrity NFT-focused marketplace on its Alipay platform and released NFT collections of historical artifacts as recently as Friday, as well as one for the 2022 Asian Games.

Alipay said in August that users should keep their NFTs for 180 days before transferring them to others to curb speculation.

Regulators recently polled major technology platforms about their NFT products, Chinese blogger Colin Wu said, citing anonymous sources.

Such interviews often occur when companies cross the line with the Chinese authorities. Ant Group had such a conversation with regulators prior to the cancellation of the IPO last year.

Other big companies like JD.com e-commerce platform have also launched NFT in China.

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