Not likely to loosen their stance on cryptocurrencies anytime soon, Chinese state entities are now warning against the speculative market of NFTs. As a result, Ant Group and Tencent have changed their terminology on NFTs and now call them ‘digital collectibles’.
While the NFTs do not come under the nationwide rules against crypto trading and related activities, citizens have been warned against using NFTs for speculative purposes.
Multinational tech conglomerate Tencent recently said that the change in terminology indicates the company’s efforts on compliance while the Ant group reiterated its stance against hype and market speculation of ‘digital collectibles’.
Alipay, a subsidiary of Ant group, operates a marketplace specializing in celebrity NFTs. It recently added NFT collections of historical artifacts on its platform along with a 2022 Asian Games NFT.
In August, the company mandated the holding of NFTs for at least 180days before transferring them to another user as a cooldown effect on the NFT market.
Cracking down on NFTs, Chinese crypto-journalist Colin Wu reported on Saturday that regulators “are strengthening the supervision of NFTs and have interviewed major Internet companies”. The report has not been confirmed yet.
Exclusive: Chinese regulatory authorities are strengthening the supervision of NFTs and have interviewed major Internet companies. NFTs are no longer allowed to be used, but instead are digital collectibles.
— Wu Blockchain (@WuBlockchain) October 23, 2021