Chinese Member of Parliament Proposes NFT Regulation at “Two Session”

March 14, 2023

By Sharan Kaur Phillora

Feng Qiya, a Chinese member of parliament, is set to propose an NFT regulation framework during an upcoming political gathering. Two Sessions is one of China’s most important annual political gatherings, and this year’s event will feature a special discussion about digital collectibles.

Here’s what we know:

According to a local report, Feng will propose establishing a clear legal definition for digital collectibles. Also, he will seek clear guidelines to govern NFT trading platforms and enhance copyright protection. 

That said, the member of parliament also wants to see authorities step up efforts to fight illegal NFT speculation in the Asian nation, thus preventing the “financialization and securitization” of non-fungible tokens.”

He said, “While the digital collection industry is developing rapidly, the current supervision is still based on industry self-discipline and local regulations, lacking a top-down supervision system coordinated by multiple departments.”

China is one of the nations that has taken a tough stance on cryptocurrencies. However, the nation’s authorities have shown leniency regarding NFTs, as they see their potential in growing the Chinese economy. Still, like many others, the nation hasn’t formulated any regulations to govern this nascent technology.

The Two Sessions gathering is also expected to see discussions on how to build a digital economy. On this, Chinese authorities should lay out the nation’s economic plans for the coming year as they reshuffle key roles.

China’s government agencies, state-backed entities, and media have been criticizing the financial risks of NFTs, driving most Chinese NFT platforms to either distance themselves from secondary markets or to develop overseas. 

Huanhe, the NFT marketplace of China’s tech giant Tecent Holdings, stopped NFT sales and initiated refunds in August 2022 and will be shut down in June 2023, according to the mobile app of Huanhe on Thursday.

Despite the strong interest in NFTs as a potential booster for the economy, the trading of digital collectibles in the nation has been highly condemned.

About the author

Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.

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