It is necessary to guard against NFT risks and actively guide the healthy development of the market. All kinds of NFT commercial platforms in the market should take "enriching the digital economy model and promoting the development of cultural and creative industries" as their business purpose. It is necessary to guard against NFT risks and actively guide the healthy development of the market.
It is necessary to guard against NFT risks and actively guide the healthy development of the market. Recently, China Internet Finance Association, China Banking Association and China Securities Association issued the Initiative on Preventing NFT-related Financial Risks, clearly indicating that they will resolutely curb the trend of NFT financialization and securitization and strictly guard against the risks of illegal financial activities.
This initiative not only affirmed the positive role of NFT, that is, "NFT, as an innovative application of blockchain technology, has shown certain potential value in enriching the digital economy model and promoting the development of cultural and creative industries", but also reminded NFT-related financial risks and proposed to be alert to NFT's potential risks such as speculation, money laundering and illegal financial activities. This is timely and necessary for NFT, which has just become popular.
NFT is a digital voucher based on blockchain technology, which is unique, indivisible and traceable, and can be used to mark the ownership of specific assets. Theoretically, anything in the real world, including a song, a painting, a paragraph of text, a game prop, etc. Can be made into NFT, and its application scope depends on people's imagination.
It is precisely because the development space is full of imagination that there has been a wave of NFT in the world in the past two years, and domestic internet companies have also launched NFT platforms, and many products have sold out as soon as they are released. At the same time, some illegal financial activities also breed. For example, many institutions carry out illegal virtual currency and token financing transactions in disguise under the banner of NFT; Some NFT underlying commodities hide financial assets such as securities, insurance, credit and precious metals, and issue trading financial products in disguise;
In addition, some NFT platforms combine with overseas public chains, mention NFT in digital wallets, and then sell them on overseas platforms to achieve the purpose of money laundering. In the long run, it is very likely to cause problems such as capital flight and overhead foreign exchange management system, which will affect financial order and economic and social stability.
The core value of NFT is to provide a winding channel for the real world and act as a bridge between the physical world and the digital world. At present, some NFT financialization and securitization tendencies have undoubtedly deviated from the right track and destroyed the industry ecology. If left unchecked, it will inevitably lead to "bad money driving out good money", which is not conducive to the healthy and long-term development of the industry.
Good classics can't be read askew. NFT is not a deceptive signboard or a hype stunt, and the NFT industry cannot fall into the wrong path of quick success and instant benefit. Relevant departments should also speed up the improvement of relevant laws and regulations, fill the regulatory gaps in time, and "mine" for the healthy development of NFT.
It is necessary to clarify the essential attributes of NFT-related activities through laws and regulations, qualitatively de-financialize NFT, formulate entry thresholds and industry standards, and standardize NFT issuance, trading and preservation processes. At the same time, actively explore effective supervision methods, severely crack down on the use of NFT for money laundering and illegal fund-raising to avoid possible financial or legal risks.
Any innovation should be based on legal compliance. For enterprises and platforms, it is necessary to practice the concept of optimizing technology, strengthen basic research, rationally select application scenarios, standardize the application of blockchain technology, give play to the positive role of NFT in promoting industrial digitalization and digital industrialization, ensure that the value of NFT products is fully supported, and prevent inflated prices from deviating from the basic law of value.
NFT, which represents the new direction of blockchain technology application and is endowed with the beautiful vision of "everything can be digitized", not only needs the continuous exploration and hard development of the market, but also needs the inclusive and prudent guidance of the regulatory authorities. Consumers should also adhere to the correct concept of consumption, enhance their awareness of self-protection, stay away from illegal financial activities related to NFT, and beware of being deceived.
It is necessary to guard against NFT risks and actively guide the healthy development of the market. The hidden financial risks of NFT (heterogeneous token) have attracted much attention.
Recently, China Internet Finance Association, China Banking Association and China Securities Association jointly issued the Proposal on Preventing NFT-related Financial Risks (hereinafter referred to as the Proposal). The reporter noted that some platforms have been cracking down on related risk speculation before. For example, WeChat banned or removed a number of digital collection platforms and official WeChat accounts; Ant Whale Detective (a digital collection platform under the Ant Group) also issued a penalty notice for users who violated the rules, and more than 180 illegal accounts were removed.
No "transaction" is the key word.
Specifically, the proposal mentions "sticking to the bottom line of behavior and preventing financial risks". It is clearly stated that we should resolutely curb the tendency of NFT financial securitization, including not including financial assets such as securities, insurance, credit and precious metals into NFT basic commodities and issuing transactional financial products in disguise. In addition, the proposal emphasizes that centralized transactions (centralized bidding, electronic matchmaking, anonymous transactions, market makers, etc.) are not provided. ), providing services such as continuous listing transactions and standardized contract transactions for NFT transactions, and setting up trading venues in violation of regulations in disguise.
Xiao Sa, a partner of Beijing Dacheng Law Firm, told the Securities Daily reporter that NFT can promote the cultural and creative industries, and the digitalization of artworks and artistic creation is the general trend. However, in the process of selling NFT, there is a tendency of financialization, especially the opening of the secondary market, which further stimulates consumers' speculative psychology. This time, it is the self-regulatory organizations of financial outlets rather than cultural organizations that put forward the initiative, indicating that the financialization of digital collections has been highlighted and valued by the regulatory authorities.
In addition, in response to the initiative of the three sessions, lawyer Yan Leimin, a partner of King & Wood Law Firm (Shanghai), explained that the proposal issued by the three sessions "does not provide centralized transactions, continuous listing transactions, standardized contract transactions and other services for NFT transactions".
All the above trading methods have typical financial trading characteristics, which is intended to remind all NFT business platforms in the market to take "enriching the digital economy model and promoting the development of cultural and creative industries" as their business purpose, avoid conducting exchange business and cut off the "signs" of financial securitization presented by illegal NFT business.
The industry generally believes that there are several characteristics of domestic digital collections: first, the financial attributes of NFT are reduced; Second, draw a clear line with virtual currency.
Pan Helin, co-director of the Digital Economy and Financial Innovation Research Center of Zhejiang University International Joint Business School, told the Securities Daily that the risk of NFT is not technical, and NFT has the characteristics of decentralization in the transaction process of art confirmation, which provides the soil for money laundering and fraud. Some people use people's misunderstanding of NFT to speculate.
He believes that at present, many financial institutions lack an objective and comprehensive understanding of NFT, so it is necessary to guard against risks. For the current domestic digital collection platform, the key word is still "no transaction".
A number of platforms are increasing penalties for violations.
As early as February this year, the China Banking Regulatory Commission issued the "Risk Tips on Preventing Illegal Fund Raising in the Name of Hyperuniverse". This time, the proposal will undoubtedly bring a "curse" to excessive speculation in the NFT market.
In fact, it is not uncommon for private transactions of digital collections to be hyped. On April 14, the reporter of Securities Daily tried to search for "digital collection" on a second-hand trading platform and found many private sellers. Personal digital collections even cost thousands of dollars. The reporter tried to contact a seller and found that it was necessary to change the platform and adopt private trading methods, but private trading methods often have greater fraud risks.
In addition, the reporter noted that both Ant Whale Detective and WeChat have increased penalties for violations related to digital collection platforms.
On March 2 1 day, the Notice of Penalty for Violators issued by Whale Detective under Ant Chain showed that the offending accounts were punished step by step according to the severity of the violation, including permanently restricting the increase of collections and banning accounts. According to the incomplete statistics of the Securities Daily reporter, Ant Chain Whale Detective has handled more than 180 illegal accounts (access and transfer functions are permanently prohibited).
Whale Measurement told Securities Daily: At the beginning of the business, we explicitly opposed the financial productization of digital collections, strengthened real-name authentication, risk control and other technical means to ensure that users can donate their collections to their friends normally, and at the same time resist various forms of potential speculative risks, including continuing to manage unconventional users who seriously violate the rules and cheat, and giving anti-fraud tips.
According to the Whalers Donation Notice, the government does not support any form of digital collection resale. Users who have purchased the digital collection 180 days can make donations to other real-name users. In order to prevent speculation, the donee can initiate a donation again two years after receiving the digital collection.
At the end of March, WeChat banned a number of digital collection platforms in WeChat official accounts on a large scale, involving more than ten platforms, all of which are small and medium-sized digital collection platforms. Wechat told the "Securities Daily" reporter that at present, the official WeChat account that only provides digital collection display and primary transaction needs the cooperation certificate with the blockchain company registered and recognized by the National Network Information Office as the qualification certificate, and does not support the provision of secondary transactions.
In addition, at present, the applet only supports digital collection display and first-class gift. Digital collection transactions and multi-level circulation are not open. If there is any confrontational behavior such as detour, it will be banned or removed according to the degree of violation.
Wechat stressed that the follow-up will pay close attention to industry trends and relevant regulations, and further improve and adjust the rules.
Sun Yulin, a senior researcher at Ou Ke Cloud Chain Research Institute, told the Securities Daily reporter, "In combination with the closure of a large number of official WeChat accounts and small programs involving digital collection and illegal accounts, and the active release of the three associations, it is expected that the supervision in this field will gradually tighten in the future, and the compliance requirements for digital collection platforms will become more and more strict."
It is necessary to guard against NFT risks and actively guide the healthy development of the market. China Internet Finance Association, China Banking Association and China Securities Association jointly called on member units to launch an initiative to prevent NFT (non-homogeneous certificate) related financial risks, resolutely curb the tendency of NFT financial securitization, and strictly guard against the risks of illegal financial activities.
In recent years, the NFT market in China continues to heat up. As an innovative application of blockchain technology, NFT shows certain potential value in enriching the digital economy model and promoting the development of cultural and creative industries, but there are also potential risks such as speculation, money laundering and illegal financial activities.
In this regard, the three associations suggest sticking to the bottom line of behavior and preventing financial risks. First, financial assets such as securities, insurance, credit and precious metals are not included in NFT basic commodities, and financial products are issued and traded in disguise; Secondly, the heterogeneous characteristics of NFT have not been weakened by the division of ownership or batch creation, and token issuance financing (ICO) has been carried out in disguise; Third, it does not provide centralized trading, continuous listing trading, standardized contract trading and other services for NFT transactions, and sets up trading venues in violation of regulations in disguise;
Fourth, virtual currencies such as Bitcoin, Ethereum and TEDA are not used as pricing and settlement tools for NFT issuance transactions; Fifth, real-name authentication should be carried out for issuers, sellers and buyers, customer identity information and transaction records should be properly kept, and Q backwashing should be actively cooperated. Sixth, do not directly or indirectly invest in NFT, and do not provide financing support for investment in NFT.
At the same time, the three associations also suggested reasonably selecting application scenarios, standardizing the application of blockchain technology, and giving play to the positive role of NFT in promoting industrial digitalization and digital industrialization; Ensure that the value of NFT products is fully supported, guide consumers to rational consumption, and prevent false high prices from deviating from the basic law of value; Protect the intellectual property rights of the underlying goods and support genuine digital creative works; Truly, accurately and completely disclose NFT product information, and protect consumers' right to know, choose and trade fairly.
Dong Ximiao, chief researcher of Zhilian Finance, suggested that investors should fully understand the value and risks of NFT and not participate in illegal speculation and trading of NFT. It is difficult for ordinary investors to fully understand virtual currency, ICO, NFT and so on. It is suggested not to invest blindly, but to consciously resist all kinds of temptations and protect your property safety.