China Has ‘Bad News’ For NFTs, Cryptocurrency Marketplaces

China Has ‘Bad News’ For NFTs, Cryptocurrency Marketplaces

Chinese internet and tech giants signed an initiative to ban cryptocurrency and digital collectibles (NFTs), along with a promise not to establish secondary marketplaces. According to the South China Morning Post, Tencent and Ant Group joined a self-driven industry initiative to ban cryptocurrency and fight speculation.

Platforms that sell digital collectibles “shall require real-name authentication of those who issue, sell, and buy” the assets and “only support legal tender as the denomination and settlement currency,” according to the document signed by China‘s biggest tech firms. “Do not contain financial assets or unlicensed financial products, including securities, insurance, credit, and precious metals, in blockchain-supported goods,” it added.

The Chinese government banned Bitcoin mining in July last year. It has plans to launch its own central bank digital currency (CBDC) called the digital Chinese yuan (e-CNY).

The new initiative called on tech firms not to “set up a centralised marketplace” for bidding, matching, or anonymous NFT trading.

The country banned all cryptocurrency transactions last September and barred foreign crypto exchanges from operating within the country in 2018.

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