Home News Ant Group, Tencent, JD.com sign NFT ‘Self-Regulation’ convention

Ant Group, Tencent, JD.com sign NFT ‘Self-Regulation’ convention

503
0

Major Chinese digital giants Ant Group, Tencent and JD.com have signed a convention on the self-regulation of non-fungible tokens (NFTs) with several government agencies, Coindesk reports.

Thus, the market hype surrounding the unique digital assets appears to have made regulators concerned that NFTs are edging too close to crypto trading. Which has been effectively banned in China due to the creation of too much market speculation.

In addition, the document states that companies and departments should counteract any form of cryptocurrency issuance and speculation with digital cultural and creative works. They are also required to prevent financial risks associated with NFT.

Signing the agreement

The “Digital Culture and Creative Industries Self-Regulation Convention” included 11 guidelines: promoting the real economy; promotion of national culture; support for the development of the industry; compliance with legal requirements; ensuring value support; consumer protection; working with controllable consortium chains; strengthening cybersecurity; exclusion of virtual currencies; prevention of speculation and financial risks; countering money laundering.

Among the state institutions, the National Copyright Trade Center Alliance, the China Academy of Fine Arts, the CCTV Animation Studio, Hunan Museum and others also signed the agreement.

Yifan He, CEO of Red Date in a Friday conference, confirmed that the companies were attempting to distance their “digital collectibles” from cryptocurrency. Red Date is constructing the Blockchain Services Network, a government-backed internet of blockchains. As a result of the conference, the Beijing firm unveiled its own NFT infrastructure.

Changing NFT references

Recall that earlier in October Ant Group and Tencent distanced themselves from the term “NFT”. Therefore, companies have replaced it with “digital collectibles” on their platforms and websites.

In a comment to the publication, Tencent representatives explained that changes reflect the company’s commitment to compliance with regulatory requirements. Moreover, Ant Group announced the fight against market speculation and hype regarding digital collectibles.

“Once market enthusiasm wanes and the hype cools, the value of these many strange NFTs will greatly decrease,” wrote reporter Wang Junhui.

Previous articleRhodium Enterprises plans to raise up to $100M in IPO
Next articleTop 5 cryptocurrencies to watch this week: BTC, ETH, BNB, MATIC, FTM