BlockBeats News, December 5, Today, the China Internet Finance Association and seven other associations jointly issued a “Risk Advisory on Preventing Illegal Activities related to Virtual Currency.” According to the advisory, virtual currency cannot be used as currency for circulation within China, and China’s financial regulatory authorities have not approved any real-world asset tokenization activities. Relevant institutions are not allowed to engage in businesses related to virtual currency and real-world asset tokens.
Previously, on April 13, 2022, the China Internet Finance Association had jointly issued a “Initiative to Prevent NFT-Related Financial Risks,” resolutely curbing the trend of financialization and securitization of NFTs, strictly preventing the risk of illegal financial activities, and consciously complying with behavioral norms. The joint appeal to member units: do not directly or indirectly invest in NFTs, do not provide financing support for NFT investments. Do not weaken the non-fungible characteristics of NFTs through ownership fragmentation or mass creation, engaging in disguised token issuance financing (ICO). Do not include securities, insurance, credit, precious metals, or other financial assets in the underlying goods of NFTs, issuing transactional financial products in disguise.
After the NFT market gradually cooled off from its peak in March of that year, it entered a bear market, and the FTX collapse event in November of the year further alienated funds and market information in the bear market; the NFT market’s heat gradually waned year after year and has since developed to the point where it is gradually being ignored.
