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Chinese Province Fujian Releases New Policy on NFT Trading

Published 06/12/2022, 07:15 AM
Updated 06/12/2022, 07:30 AM
Chinese Province Fujian Releases New Policy on NFT Trading

  • Fujian Province declares that no NFT trading will ensue without proper authorization.
  • The paper emphasized that NFT trading venues without authorization will get blacklisted or suspended.
  • Trading venues must assist customers establish good trading conceptions, fight speculation, and prohibit inflated pricing.

A “Reminder Letter” from the “Working Group of Fujian Province to Clean Up and Rectify Various Trading Venues on Preventing NFT Violations” has been extensively disseminated online. The paper cites four warnings on NFT-related transactions on Fujian Province trading platforms, notably “no NFT transactions without authorization” and no covert involvement in NFT operations in contravention of rules.

Fujian Provincial-Local Financial Supervision and Administration acknowledged the document’s legitimacy on June 10. The paper says Fujian trading venues can’t conduct NFT-related activity. Many NFT platforms don’t fit the article’s definition of trading venues.

The person that confirmed the documents said added that they follow ‘7+4’ local financial oversight.

The document noted that several NFT items had surfaced lately. The group claims NFTs are readily linked to criminal activities including fraud, speculation, and money laundering, producing cascading dangers, and therefore, added that from now on Fujian trading venues must get authorization for NFT trades.

According to the letter, criminals might use trading venues’ compliance credentials to engage in illicit operations since they participate in NFT issuance and trading on behalf of co-sponsors, strategic partners, technical support parties, etc. If the trading venue is not officially known, it will be blacklisted, suspended for rectification, or both.

Concerning investor protection, the group said all trading venues should advise clients to build proper trading conceptions, oppose speculation, and prevent trading product prices from being inflated and straying from the law of value. If unlawful acts are detected, they should swiftly report them. Furthermore, the document instructs all trading platforms in Fujian Province to not engage in NFT issuance and trading activity.

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