China Continues Its Stringent Crypto Measures

Quick take:

• Chinese regulators warn against NFTs and their financial risks.
• Regulators link crypto transactions mainly with illicit activities.

China is choking the crypto market tighter as they warn that it is a space for illegal activities. Ever since a Chinese media outlet said NFTs urgently need supervision, three industry organizations have joined hands to issue guidelines in the country.

Financial institutions have been warned against illicit NFT trading by China’s government-managed bodies, namely, the National Internet Finance Association of China, China Banking Association, and the Securities Association of China.

China’s not so friendly crypto space

China is not so accepting when it comes to crypto growth. Last year the government had made stringent measures to control the Chinese crypto market. The nation also banned ICOs, crypto mining, and crypto transactions.

The organizations also mentioned the risks, including money laundering, speculation, and illegal transactions.

Chinese associations stated that “In recent years, China’s NFT market is getting increasingly hot. But, institutions are now asked to not provide a financing platform or even a centralized exchange for NFT investments.”

China lacks a proper legal framework to govern the NFT market in the country. Even though the financial institutions have some basic guidelines, the institutions warned that the NFTs shouldn’t be used for issuing securities, insurance, loans, and financial assets.

NFT issuers, buyers, and sellers should also reveal their real names to avoid illicit laundering.

Even amidst these not-so-pleasing legislations, Broadcaster Shandong Television, China’s television network, is working on developing an NFT marketplace.