NFT platforms are on the rise in China, despite government warnings

NFTs are still awaiting control from China. Despite the ban on the use of secret money last year, there is no law banning the trading of NFTs. The Chinese government, however, warns of investment risks.

Recent data shows that the number of NFT trading systems collected is increasing. In just 4 months, the number of digital systems has increased to more than 500. By February 2020, the number was over 100.

According to a report published by a local newspaper, the increase in the number of NFT trading platforms is justified by the rising popularity of these assets. Giants like Tencent and Alibaba have registered several commercial brands for NFT projects, which shows their popularity well.

The Chinese government, however, remains skeptical about the growth of this market. Government agencies warn of high levels of speculation, which increases the risk for investors.

In addition, NFTs have also become a way for people to express themselves digitally during China’s strong locks because of COVID-19. Shanghai residents listed hundreds of NFTs at Opensea in May at the peak of the locks.

Despite the huge popularity, the business of collecting products needs to be careful. Many large companies offer NFTs on their own blockchain, trading in local fiat currencies.

No ban, but many warnings

Since the ban on trade and currency ownership in China, NFT platforms have been the subject of numerous warnings from financial institutions and authorities.

In April this year, the Bank of China, the Chinese Internet Finance Community and the China Securities Association issued a joint statement warning the public about the “hidden danger” of investing in non-fungal tokens, or NFTs.

In the notice, the three parties launched innovation initiatives in the crypto and blockchain space targeting NFTs, as well as “firmly blocking NFT funding and securities” to reduce risks around illegal activities. The Bank of China Association said member states should not focus on NFT assets such as bonds, precious metals and other financial products.

“We strongly urge users to develop sound consumer concepts, increase their awareness of self-defense, actively oppose NFT rumors and rumors, be vigilant and refrain from illegal NFT-related financial activities, and protect their property security accordingly,” he said. parties. “If the relevant illegal activities are found, they must be reported to the relevant departments in a timely manner.”

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