China’s MP asks government to outlaw NFT speculation by CoinEdition

by James · March 10, 2023

Feng Qiya plans to propose NFT regulatory system at the annual Beijing meeting.
That includes cracking down on NFT speculation to avoid financialization.
Earlier, China’s NFT exchange Huanhe shut down after increased scrutiny.

In an exclusive interview, Feng Qiya, a Chinese deputy of the National People’s Congress (NPC), said she would propose establishing a regulatory system for digital collection in the annual Beijing meeting called “Two Sessions.”

Two Sessions is the nation’s most important annual political gathering with the NPC and the Chinese People’s Political Consultative Conference (CPPCC). Part of Qiya’s proposal will be to clarify the legal characterization of digital collections, NFTs. In addition, Feng intends to ask the government to crack down on NFT speculation so that digital collectibles are not turned into investments and sold as securities.

Qiya was quoted as saying:

While the digital fundraising industry is developing rapidly, current oversight is still based on industry self-discipline and local regulations, and lacks a top-down oversight system coordinated by multiple departments.

Furthermore, the report highlighted that digital collections in China were quite different from those in other countries. According to the report, other countries’ digital collectibles use virtual currency for anonymous transactions, where users primarily seek financial value. In contrast, digital collections in China tend to operate on real-name transactions using the Chinese currency, the RMB, and emphasize the content and collection value rather than solely on their financial value.

Notably, some Chinese NFT platforms shut down operations in response to criticism from government agencies. Last August, the Huanhe mobile app, the NFT marketplace owned by China’s digital giant Tencent Holdings (OTC: TCEHY ), stopped NFT sales and started refunds.

The Huanhe app, formally released in August 2021, stopped giving users NFTs a year after increased regulatory scrutiny. Huanhe was one of China’s most popular NFT exchanges, selling out new items immediately after listing.

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