Alibaba, Tencent propose self-discipline and self-discipline development for NFT segment

China’s tech giants have launched a “self-discipline initiative” to bring more transparency to the NFT sector.

Applying “self-discipline initiative” to NFT

According to the newspaper’s report South China Morning Post, Tencent, Ant Group, Baidu, JD.com and a number of leading technology companies in Mainland China have launched “proposed to develop self-discipline” for the “digital collectibles industry” last week. The main point of the proposal is that users who have problems buying and selling NFTs will be asked to verify their real name.

In the statement of China Cultural Industry Associationthe signatories to the agreement also acknowledge and reaffirm the existing regulation banning the use of cryptocurrencies, emphasizing that platforms offering digital collections (or NFTs) can only “support legal tender as the currency of denomination and payment.”

The proposal also states that digital platforms must obtain relevant regulatory certifications, ensure the security of the underlying blockchain technology, and strengthen the protection of intellectual property rights.

While not detailing the sale of NFTs, the content of the initiative pledges to avoid establishing secondary markets for NFT trading. Especially “resolutely against speculation”.

“Different from most foreign platforms that adopt NFT technology such as financial products, domestic digital collections are considered a genre of digital cultural creation.” – China Cultural Industry Association said.

NFT is “safe” in China

The idea of ​​this initiative for the NFT sector in China came from private companies. Thus, it is not legally binding, but marks an important step in the direction of clear regulation. Public bodies responsible for developing industry standards may consider proposals.

In 2021, China took strong measures to “suppress” domestic crypto businesses, ban cryptocurrency transactions, and even force many Bitcoin miners not to operate in the territory.

However, this “blockade” does not include the NFT space. In January, the blockchain network backed by Chinese authorities announced the creation of its own platform for launching encrypted digital collections. The feature of this platform is that it runs on blockchain infrastructure but is not public and does not allow cryptocurrency transactions.

The big three tech companies include: Tencent, Ant Group and Baidu, also launched their own on-chain digital asset marketplace, allowing purchases only in Chinese yuan and banning secondary trading.

In April, the China National Internet Finance Association, China Bankers Association and China Securities Association issued guidelines banning the use of NFTs in securities issuance, insurance and lending. At the same time, prevent the country’s financial institutions from facilitating NFT transactions and investments.