Amid increasing scrutiny on NFTs in China, Chinese IT giants Ant Group, Tencent, and JD.com(Kyoto Shojo) have signed a “self-regulation convention” on non-fungible tokens (NFTs) on Sunday.
In addition, the National Copyright Trading Center Alliance, the China Academy of Fine Arts, state broadcaster CCTV’s Animation Studio, and Hunan Museum also signed the convention.
The companies have signed a pact called “Digital Culture and Creative Industries Self-Regulation Convention” with state organizations, Chinese local media reported Sunday. While the NFTs have not been banned in the country, many regulators have expressed worry that the rise of NFTs might be very similar to the now-banned crypto asset trading.
The pact consisted of 11 core principles that were in line with the government’s motives. They included “enabling the real economy; promoting national culture; supporting the development of the industry; adhering to the original letter of the law; ensuring value support; protecting consumer rights; working with controllable consortium chains; maintaining cybersecurity; ending virtual currencies; preventing speculation and financial risks, and preventing money laundering.”
The convention was guided by the Chinese copyright regulator the National Copyright Exchange Center Alliance.