Metaverse and NFT

Shanghai supports NFT trading platform?

 Chinese tech giants including Tencent Holdings (0700.HK) and Ant Group have signed a pact to end secondary trading in NFT


 After raising concerns about the financial risks associated with non-tradable tokens(NFTs), several Chinese authorities have offered guidance on how best to take advantage of the new technology. 

The Shanghai government has said it supports big companies to explore building NFT exchanges, according to the city’s 14th five-year digital economy plan released this week.

Thus, NFT sales increase by 10% according to Cryptopunk. The seven-day stats show that NFT sales managed to climb more than 10% from the previous week in China.

 

Following a recognition of Bitcoin in May?

In May 2022, a Shanghai court ruled that Bitcoin is virtual property, so it must be subject to property law.

Indeed, the Shanghai High People’s Court published on May 13, 2022, a document in which it declares that Bitcoin is subject to laws and other regulations on property rights.

This decision was made in a lawsuit filed in a magistrate’s court in October 2020 involving the recovery of a loan of 1 Bitcoin (BTC). The court recognized Bitcoin as having value, scarcity and being disposable, subject to property rights and meeting the definition of virtual property.

In the current trial practice, the people’s court formed a unified opinion on the legal position of Bitcoin and identified it as virtual property. BTC “has a certain economic value and complies with the attributes of property, the rules legal property rights are enforced for protection

China had started to crack down on cryptocurrency transactions and stepped up its efforts in 2017. Everyone watched this behavior. The government then gradually disconnected crypto miners from the power grid and tried to keep them away from crypto markets.

Yet, data from Similarweb shows that crypto-exchanges like Deribit and OKX still receive huge traffic from China.

 

Goodbye Bitcoin, hello NFTs?

The Chinese government seems to have found its way into cryptocurrency and companyor? He turned to NFTs.

It is good to know that despite the ban on crypto mining in China, it is the first country in the world to have introduced a central bank digital currency (CBDC). The digital yuan saw its first major use, so to speak, despite restrictions in place due to Covid-19, during the Beijing 2022 Winter Olympics.

 

Farewell also to NFTs?

According to Reuters, Chinese tech giants including Tencent Holdings (0700.HK) and Ant Group have signed a pact to end secondary trading in digital collectibles and “self-regulate” their business in the market, it said. Chinese state media.

The companies were among 30 companies and institutes that accepted the “Digital Collectibles Industry Self-Discipline Development Initiative” in which they will help prevent secondary trade and speculation in digital collectibles. , according to a report from the Shanghai Securities News.

The self-regulation pact the firms signed on Thursday contains a total of 14 articles. Besides a ban on secondary trading, the signatories are asked to implement real-name authentication when selling digital collectibles to users.


Shanghai : NFTs should not be used for securitization or traded with cryptocurrencies?

The government’s intention for NFT is clear, using it as a tool to protect intellectual property, which is considered to be still lacking in the country. Indeed, the plan wants the city to take the first steps in researching and promoting the digitization of assets such as NFT, the global circulation of digital intellectual property, and the authentication of digital property.

On the other hand, Chinese authorities have been firm in their criticism of speculative NFTs. In April, China’s leading financial industry association proposed that NFTs should not be used for securitization or traded with cryptocurrencies, which have been banned in the country.

This suggestion effectively negates the presence of global NFT marketplaces such as OpenSea in China. What the state allows is a private consortium blockchain run by a trusted institution.


Image Source : Unsplash

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