Chinese tech firms pledge to ban NFTs, cryptocurrency marketplacesChinese tech firms pledge to ban NFTs, cryptocurrency marketplaces

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IANS | 04 Jul, 2022
Chinese internet and tech giants on Monday signed an initiative to ban cryptocurrency and digital collectibles (NFTs), along with a promise not to establish secondary marketplaces.

According to the South China Morning Post, Tencent and Ant Group joined a self-driven industry initiative to ban cryptocurrency and fight speculation.

Platforms that sell digital collectibles "shall require real-name authentication of those who issue, sell and buy" the assets and "only support legal tender as the denomination and settlement currency", according to the document signed by China's biggest tech firms.

"Do not contain financial assets or unlicensed financial products, including securities, insurance, credit and precious metals, in blockchain-supported goods," it added.

In April this year, the National Internet Finance Association of China, the China Banking Association, and the Securities Association of China issued a joint statement to prohibit the use of NFTs in the issuance of financial assets.

The new initiative called on tech firms not to "set up a centralised marketplace" for bidding, matching, or anonymous NFT trading.

The Chinese government banned Bitcoin mining in July last year.

It has plans to launch its central bank digital currency (CBDC) called the digital Chinese yuan (e-CNY).

The country banned all cryptocurrency transactions last September and barred foreign crypto exchanges from operating within the country in 2018.