Chinese financial institutions’ NFT guidelines prevent them from any major role in digital collectibles
- Guidelines issued by the government-managed industry associations prohibit the use of NFTs in the issuance of securities, insurance, loans and precious metals
- Chinese financial institutions also cannot facilitate NFT trading and investments
The use of NFTs in the issuance of financial assets such as securities, insurance, loans and precious metals will be prohibited, according to a statement jointly issued by the National Internet Finance Association of China, China Banking Association and the Securities Association of China on Wednesday.
Financial institutions have also been urged not to illegally facilitate the trading of NFTs or illegally establish a trading platform, according to the statement from the government-managed industry associations.
The guidelines come as companies wait for a clearer picture from regulators on blockchain-backed digital assets, which are becoming increasingly popular in China.
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SCMP Explains: What are NFTs?
The hype around NFTs revolves around linking digital artwork and other assets to unique blockchain-based tokens, allowing them to be collected and traded like physical assets. The technology is not explicitly banned in China, with authorities embracing some uses of blockchain, such as protecting intellectual property.