Leading Chinese technology companies have signed a "self-discipline initiative". The document aims to bring clarity to the regulation of digital assets
Chinese technology corporations will carry out customer identity verification when purchasing NFTs, according to the South China Morning Post. The proposal for mandatory user verification has been supported by private companies that have adopted a “self-discipline initiative”.
The document is not legally binding, but has already been signed by companies such as Tencent Holdings, Baidu, JD.com and Ant Group, a fintech division of Alibaba Group Holding. The China Cultural Industry Association (CCIA) said that the signing of this agreement could be an important step towards greater clarity in the regulation of digital assets.
The document does not mention the resale of NFTs, but the companies undertake not to create secondary markets for token trading and to resist speculation. Digital platforms should also be certified and strengthen intellectual property protection.
The publication reports that Ant and Tencent were the first Chinese tech giants to launch digital collectible token platforms. They were followed by JD.com and Baidu, who released their own NFTs.
In China, token holders are not allowed to resell items for profit, the article says. A digital collectible can only be given as a gift after the owner keeps it for a certain period.
Tight measures against cryptocurrencies and NFTs began to be introduced in China at the end of May 2021 after the call of the Vice Premier of the State Council of China, Liu He, to tighten the regulation of digital assets. The authorities of the local provinces banned the mining of cryptocurrency, and the crypto business left the country.
