Chinese Province Fujian Releases New Policy on NFT Trading -Breaking
- Fujian Province states that NFT trading is prohibited without authorization.
- This paper stressed that NFT trading venues not authorized will be blacklisted and/or suspended.
- Customers must have good trading concepts, combat speculation and prevent excessive pricing.
A “Reminder Letter” from the “Working Group of Fujian Province to Clean Up and Rectify Various Trading Venues on Preventing NFT Violations” has been extensively disseminated online. The paper cites four warnings on NFT-related transactions on Fujian Province trading platforms, notably “no NFT transactions without authorization” and no covert involvement in NFT operations in contravention of rules.
Fujian Provincial-Local Financial Supervision and Administration acknowledged the document’s legitimacy on June 10. The paper says Fujian trading venues can’t conduct NFT-related activity. Many NFT platforms don’t fit the article’s definition of trading venues.
The person that confirmed the documents said added that they follow ‘7+4’ local financial oversight.
According to the group, several NFT-related items have surfaced in recent times. NFTs have been linked to criminal activity, including speculation, fraud and money laundering. The document states that Fujian trading locations must be authorized for NFT trades.
According to the letter, criminals might use trading venues’ compliance credentials to engage in illicit operations since they participate in NFT issuance and trading on behalf of co-sponsors, strategic partners, technical support parties, etc. If the trading venue’s identity is not known, it may be blacklisted, suspended or both.
The group stated that all venues must advise their clients on how to protect investors. They should also encourage speculation and stop trading products prices being exaggerated or straying too far from the law. They must immediately notify authorities if they are aware of any unlawful activity. The document also instructs trading platforms located in Fujian Province not to engage in NFT trading or issuance.