Why Chinese Tech Giants Now Require Identification Checks When You Trade NFTs?

Why Chinese Tech Giants Now Require Identification Checks When You Trade NFTs?

The South China Morning Post reported that Chinese private companies had launched a project to de-anonymize NFT trading. Huge companies in this nation made the “Self-Discipline Initiative” commitment to confirm users’ identities in the digital space.

Baidu, JD.com, Tencent Holdings, and Ant Group, an affiliate of Alibaba, among others, all signed the document. The businesses will begin to only accept legal tender currency to settle payments and “require real-name authentication of those who issue, sell, and buy” NFT.

The document is not binding, and it is claimed that the Chinese government had no influence on it. It therefore doesn’t really represent the viewpoint of the government.

Finally, these private companies asserted that they were attempting to stop Chinese individuals from making speculations about NFT collects and demanded that subscribing companies “firmly resist it.” The agreement specifically states that the member firms would not provide any tokenized products, including precious metals and securities.

Additionally, the businesses will need to operate under the appropriate licenses and certificates, which might be difficult for Chinese blockchain service providers. China has to “implement further regulation,” according to Luo Jun, secretary-general of the metaverse committee of the China Computer Industry Association.

In spite of China’s restrictions on crypto and NFT trading, digital assets and cryptocurrencies are a hot topic there. According to Jun, however, the country must “curb financial risks.” The study asserts that the document did recognise the potential for NFT technology to significantly change intellectual property and cultural product registration.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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