Officials from China’s Hainan province are upping the ante non-fungible tokens (NFT) oversight in the region. Provincial authorities say they are keen to prevent abuse of the asset class by criminal elements aimed at scamming unsuspecting victims.
The regional market regulator, Hainan provincial market regulator and nine other regulatory agencies released a memorandum Direct NFT providers to register with the authorities before offering them to the public.
The disclosure noted that the move aims to “promote the healthy development of the digital collections industry and effectively prevent related risks.” Going forward, market participants will be subject to licensing requirements while regulators commit to standardizing the NFT market in line with existing laws.
Laws include, but are not limited to, the Auction Law of the People’s Republic of China, the Regulations on Administration of Registration of Market Participants of the People’s Republic of China, Administrative Measures for Licensing of Telecommunications Enterprises, and Administrative Regulations for Blockchain Information Services.
In addition, the regulators warned Eliminate NFT firms promotional content this is misleading for consumers to disinfect the industry. The memo notes that players who lure consumers with “whitelists” or high rewards may be treated this way fraud suspected that the security authorities were asked to “maintain a high-pressure break-through situation”.
The market regulator also urged law enforcement agencies to work together to prevent instances of copyright infringement while preventing major financial risks to the community. NFT providers are required by the Ministry of Tourism, Culture, Radio, Television and Sports of Hainan Province to give priority to digital collectibles with Chinese characteristics.
The State of NFTs in China
After China’s infamous Virtual currency ban in 2021, the communist nation has failed to establish precise rules for NFTs in the country. Due to the lack of strict regulations, NFT adoption has continued to grow, aided by government agency incursions into the industry.
In December, local news outlets reported that the country was slowly moving towards launching a national platform for trading NFTs. The platform, a collaboration between state-owned Art Exhibitions China, Huban Digital Copyrights Ltd and the Chinese Technology Exchange, has been touted to serve as a secondary market for NFTs.
While Chinese courts have ruled digital are collectibles protected Under existing property laws, regulators have continued to frown on their use speculation.
Watch: Buzzmint: Elevating NFTs
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