China’s member of parliament to propose NFT regulation at two sessions

Industry

March 10, 2023March 10, 2023

China’s parliament member, Feng Qiya, is set to propose NFT regulations at the ongoing ‘Two Sessions,’ which is China’s most important annual event.

Details of Feng Qiya’s proposition

According to a report by local Chinese media on March 8, Feng will propose that authorities establish a clear legal definition of digital collectibles. He will also lay out market access rules for NFT trading platforms and upgrade copyright protection for Non-fungible tokens(NFTs).

Moreover, he has requested authorities to prevent the market growth in influence and conversion of digital assets into securities by clamping down on illegal NFT speculation.

According to Feng, the current NFT regulations in China are primarily rules established by local authorities and business insiders. He, therefore, expressed that the nation needs a legislative process and a top-down regulatory structure across different government arms.

China’s Two Sessions 2023 agenda

Two Sessions refers to China’s annual parliamentary meetings. The Chinese political bodies discuss plans for China’s economic, military, trade, and
environmental policies here.

Building a digital economy is expected to be a top agenda in this year’s meeting. Therefore, authorities in China will shuffle key roles and lay out the country’s economic plans for the rest of the year. China’s interest in NFTs is rising as the nation’s policymakers view the asset as a boost to the economy.

However, the nation is also cautious about NFT trading and has previously tried to discourage it. Additionally, NFT’s financial risks have been under close criticism by the media, government agencies, and state-backed entities.

The criticism has discouraged most Chinese NFT platforms, causing them to either develop overseas or distance themselves from secondary markets.

Subsequently, China’s tech giant Tencent holdings’ NFT marketplace, Huanhe, will be shut down in June 2023. According to reports, the marketplace stopped sales and refunded investors from Aug 2022.

Source: nft.news