China’s Ant Group, Tencent, Baidu, JD.com push for NFT self-regulation
Chinese tech giants including Ant Group, Tencent, Baidu and JD.com are joining yet another self-disciplinary initiative on eliminating speculation of non-fungible tokens (NFTs), also known as “digital collectibles.”
See related article: China’s diktat against NFT flipping spawns an ingenious industry
Fast facts
The companies pledged to resist secondary trading and ensure real-name identification in a statement released Thursday by the China Cultural Industry Association.
The tech firms also pledged to curb the financialization of digital collectibles and to only permit trades in fiat.
“Digital collectibles” is a phrase used in China to avoid reference to NFTs since state media started denouncing speculative activities related to the assets.
In October 2021, Ant Group, Tencent and JD.com vowed not to get involved with cryptocurrencies and would work to prevent speculation and money laundering risks in NFTs.
Beijing has yet to provide clear regulations for NFTs.
Users of official accounts on WeChat, the popular Chinese messaging app, face disciplinary action, including permanent bans, if they are found to be involved in flipping digital collectibles.
Earlier this week, Chinese NFT marketplace Yucang announced it is repurchasing assets due to lack of regulatory clarity.
See related article: Chinese marketplace repurchases NFTs, citing uncertain policies