TECENT, ANT GROUP AND OTHER TECH GIANTS ARE TAKING POSITION THAT MIGHT LEAD TO REGULATION ON THE NFT SECTOR!
In China, the future of NFT is becoming more evident as the nation’s tech behemoths like Tencent collaborate to develop industry standards.
The China Cultural Sector Association, Tencent, Ant Group, Baidu, and other companies collaborated to release a “self-disciplined growth proposal” for the “digital collectible industry.” Which is how NFT is now referred to in China to avoid the financial connotations of the technology.
Industry groups may not have regulatory authority, but they can help the industry adopt best practices and standards. For example, according to information on its website, Alibaba and Tencent are listed as members of the China Cultural Industry Association, which was established with the State Council’s approval.
NFT supporters in China have been watching for top-level regulatory directives. After China forbade cryptocurrency trading, there was suspicion that NFTs in their most basic form would not be permitted in the nation.
That appears to be the case. In April, China’s financial associations proposed that NFTs not be used for securitization or transactions in crypto.
The biggest platform operators in China taking a position may bring regulation of the NFT sector one step closer. The proposal by Tencent, Ant Group, and others includes the necessary legal authorizations to ensure the security of the underlying blockchain technologies, enforce user real-identity checks, strengthen intellectual property protection, firmly prohibit financial speculation, and encourage users’ rational consumption.
Before implementing NFT laws, Chinese tech companies were testing the waters. Behemoths like Tencent, Ant Group, and Baidu have developed their private, consortium-based digital collectible marketplaces. Users can only pay with the RMB, the official fiat currency of China. Secondary trading is heavily restricted to avoid price gouging.