- Renowned tech companies have agreed to a “self-discipline proposal” to bring further clarity to the NFT world.
- Identities of users will be checked before purchasing and selling NFTs on trading platforms.
- Trading platforms will require regulatory certifications and must refrain from any speculation.
The China Cultural Industry Association along with popular tech companies of China like Tencent, Baidu, Ant Group, JD.com and others issued a “self-disciplined development proposal” for the “digital collectible industry.”
The proposal intends to introduce real-name validation for users that purchase, sell and issue NFTs.
In a statement, the China Cultural Industry Association shared that parties that have signed the agreement have also allowed and reaffirmed the current regulation which bans cryptocurrencies use. They have emphasized that platforms offering digital collectibles can “only support legal tender as the denomination and settlement currency.”
According to the proposal, digital collectible platforms should hold applicable regulatory permits, guarantee the safety of underlying blockchain technologies and enforce protection of intellectual property.
Though there’s no discussion regarding the resale of NFTs, secondary trading has been prohibited.
The China Cultural Industry Association also said that domestic digital collections are considered as the category of digital cultural creativity.
Liu Jiahui, a partner at Beijing’s Derun Lawyers, shared that proposals alone cannot stop people from trading their digital assets. He added:
Chinese laws stipulate that the owner of property rights can dispose of the property at any time. Digital collectibles have higher liquidity than traditional artworks. It is in fact impossible to prohibit speculation during circulation.