Chinese Communist Party Says Perfect Supervision Required For NFTs

• Chinese news agency made arguments against treating NFTs as creative and cultural products, calling for more robust restrictions.
• Chinese Communist Party’s official newspaper and Shandong TV, both have their NFT marketplaces, with NFTs surging in secondary sales.
• Meanwhile, China’s technology mammoth has become self regulated amid administrative uncertainty, with Alibaba implementing 180 day lock-in before selling it again.

Booming NFT Sector

Recently, Yuanmingyuan’s sheep head of 12 animal heads, which was missing for several years, came out of the bushes from nowhere in the auction, and sold for 8,141 Yuan ($1,230).

In recent years, NFTs have risen in popularity all over the globe. Previous year, a beeple NFT was sold at an astounding value of $69.34 Million at Christie’s, commencing at just $100.

In China, not just internet platform mammoths have stepped into this sector, but also a plethora of startups have developed platforms, luring a loads of sole creators, museums, artists, and brands of several sizes to launch virtual collectibles.

There Are Risks

For Chinese nations, NFTs possess some risks, NFT is a token abroad, usually developed on an open blockchain, and the value of artwork is identified. Local institutions insists that they only make virtual arts,and majority of trading platforms are developed on alliance chains

Some startups also developed their own blockchains and platforms. There are several alliance chains and platforms, meaning, the value of virtual collections is not robust and speculation risk is high.

Some platforms restrict secondary sales, but limitation is not effective, and private transactions are happening actively.

From a practical vantage point, it is not sufficient that virtual collections are only considered as creative and cultural commodities traded digitally and counseled by market supervision divisions and intellectual property departments, and it is urgent to set up a joint mechanism.

As per some reports, SEC is investigating NFTs for illicit fundraising, and Treasury Department of US also issued a warning regarding NFTs to be utilized as tools of money laundering.

NFT, metaverse, Web3, etc. as core is considered the evolution of the internet. In contrast to metaverse, virtual collections are more mobilized and are quickest application scenarios for blockchain.

Through this, we can polish and popularize latest techs and thrive for windows in China to take front in opening a gateway to a new world.

For this kind of latest stuff, it is vital to remain cautious and tolerant, and a requirement to keep a close eye to discover cautious key. Before administrative algorithm is clarified, clients are advised to treat it patiently and take part rationally.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

Latest posts by Nancy J. Allen (see all)