Digital collecting platforms have increased fivefold in China in recent months, despite government warnings.
China has been maintaining a anti-cryptocurrency stance. The Asian giant banned the cryptocurrency mining across the national territory, which caused a large drop in the Bitcoin hash rate worldwide. However, until now, has not shown opposition to NFTs, going so far as to create its own blockchain to develop its own type of non-fungible token.
On the other hand, the Chinese government has asked its citizens to be very careful and advises them Do not trade in any form of digital asset, be it cryptocurrencies or NFTs.
Even though in 2021, China completely banned the use and possession of cryptocurrencies in the country, although hasn't said anything about NFTs. In fact, there are more than 500 platforms offering trading services for non-fungible tokens and digital collectiblesIf we take into account that in February there were only 100 of these platforms, the number of them has multiplied by five in just a few months.
The Chinese government has warned the population about this “reckless” growth of this type of platform, stating that many of them, specifically the secondary markets, operate as a speculative scheme, which could be harmful to investors.
The report, published by the Chinese government, claims that many collectibles circulating in secondary markets are “low quality”, so these platforms could quickly collapse if at some point there is regulation against this type of digital assets.
In China, due to a lack of regulatory oversight, platforms and users have been cautious about entering the world of digital collecting. WeChat, the country's main messaging platform, has banned several accounts related to digital collecting. Tencent, the company behind WeChat, has explained that it will only allow the display of these collectibles as digital gifts or digital arts.
Following the Chinese government's warning against buying digital collectibles for speculative purposes, many tech giants are avoiding using the word “crypto” directly.NFT" when talking about these assets.
For example, Tencent and Ant Group call their NFTs “digital collectibles” and both use private blockchains, and They are quoted only in yuan, the country's legal tender.
On the other hand, China launched its own blockchain, called Blockchain-Based Services Network (BSN), on which it intends to develop a series of projects related to non-fungible tokens, which will play an important role in Chinese society.
[hubspot type=cta portal=20298209 id=38fb28e1-1dc1-40e3-9098-5704ca7fcb07]
