Organizations are concerned that non-fungible tokens can facilitate illicit financial activity

​Chinese financial associations proposed a number of restrictions for NFTs

14.04.2022 - 11:25

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What’s new? The China Internet Finance Association, the China Banking Association, and the China Securities Association have posted a statement suggesting a set of new guidelines for dealing with NFTs. The associations note the financial risks associated with non-fungible tokens.

Statement from the three Chinese associations

More details about restrictions. The associations note that non-fungible tokens contribute to the digitalization of the country, but at the same time they are concerned that NFTs can be used for money laundering and illegal activities. Therefore, a set of guidelines have been proposed for the industry:

  • NFTs should not include bonds, insurance, securities, precious metals, or other financial assets.
  • Non-fungible tokens should not be traded on separate platforms and marketplaces.
  • NFT transactions should not be paid for in cryptocurrencies.
  • Platforms should conduct authentication checks and store transaction records of customers to prevent money laundering.
  • Organizations should not directly or indirectly provide financial support to NFT.

What had happened before? To distance themselves from the crypto world, Chinese tech companies call NFTs “digital collectibles.” It was previously reported that several Chinese companies imposed restrictions on the operation of NFT platforms. WeChat, Ant Group, and Tencent blocked several marketplaces.

Author:

Vasiliy Smirnov Vasiliy Smirnov

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