However, there is always a sense of uncertainty in the industry: like all young tech surgeons fitting into the traditional regulatory framework, the calculation of when the Chinese government will enter has begun early. Since 2017, China has maintained a strong stance against unparalleled crypto around the world. Chinese financial and cyber regulators have not yet completely banned the trade of NFTs, but silence casts a long shadow over the business.
This new joint statement is not an official statement from the government, but it is close. “While the affidavit has no legal effect, it is somewhat binding on the members of these three associations,” said Jay Si, a Shanghai-based lawyer for Chinese law firm Zhong Lun.
While the state is quietly considering its move, players in the NFT industry are trying to stay on the safe side.
For example, NFT platforms owned by leading Chinese tech companies do not use the word “NFT” anywhere. Instead, they call them “digitally stored objects.” The idea is that they’re not much different from your funky pop toys or vinyl collections, except that they’re online on a private-company-owned blockchain that isn’t completely transparent to the public. The collector has to buy it from the currency issued by the government, and resale is not allowed.
Alibaba, for example, released its NFT app Jingtan in December and is now releasing NFTs as many times as it does every day. This limited-edition offering સામાન્ય usually 10,000 copies of popular Chinese artwork or works by digital-native artists વે sells for more than 5. Buyers have to click in milliseconds to secure the purchase, but the cost is not high. And once they get ownership of it, they will have to wait six months before “gifting” the item to another user, who will have to wait another two years before re-gifting it. Last year, Alibaba banned its own secondhand marketplace from listing any NFT products. Because of these rules, NFTs have no official resale value, so they will not act as a financial investment.