- Market regulators of Hainan province aim to tighten the NFT sector to promote development.
- People’s Bank of China (PBoC) is working on new features of a pilot program for its Central Bank Digital Currency (CBDC).
- Educating people about the risks and laws has been the aim of the authorities.
As an initiative to promote and boost NFTs as part of China’s digital economy. Recently, the administration from the southern Chinese province of Hainan announced strengthening regulation of the non-fungible token (NFT) market to “support the healthy development” of the sector and minimize fraud and other associated risks.
In another individual announcement, the People’s Bank of China (PBoC) also mentioned the Central Bank Digital Currency (CBDC) pilot program, also referred to as the digital yuan or eCNY.
As per a notice published in the public domain dated January 29, Hainan’s market controller and a few other nine organizations from the province presented a detailed plan to address the NFT sector going forward.
Going through the translation of the document discloses that the regulator is prioritizing the promotion of NFTs as a segment of the digital economy in order to draw international investment to the Hainan Free Trade Port.
Adding further, as stated by the provincial agencies, they aim to govern the NFT market in a way that avoids “market instability,” including false information, speculation, copyright theft, fraud, money laundering, and fake value.
Under all of this, the authorities have also laid emphasis on educating the public about the “risks and laws” of the industry in order to help them “buy cautiously” and prevent losses from irrational speculation on NFTs.