Some of the biggest tech giants like Tencent, Ant Group and Baidu have now committed to prevent secondary trading for NFTs and also self-regulate their market activities to comply with the Chinese lawmakers and to be a part of the “Digital Collectible Industry Self-Discipline Development Initiative” which includes a total of 30 major organizations whose purpose once again, is to put a stop to secondary trading of digital assets along with speculation. This is an initiative by the Chinese Cultural Industry Association and has some serious effects on the NFT and digital trading market in China.
The Chinese Government has had a history of rejecting cryptocurrency and digital assets
The Chinese Government and lawmakers don’t exactly agree on the whole Blockchain concept as even crypto trading is prohibited and any speculation is also wiped out citing financial stability.
While these organisations like Tencent and Ant Group have been dabbling in the world of NFTs and online marketplaces since the Chinese Yuan can be used to purchase digital assets.
Among the other pacts, these organisations will now be selling digital assets by authentication on a real name basis while working on making Blockchain platforms secure and ensuring the personal information of buyers is safe.
China’s strict laws aren’t just restricted to crypto and NFTs as gaming is another very restricted sphere and what consumers can and can’t do is very carefully controlled. This move will certainly affect the already strained NFT trading scene in China and the prohibition of secondary trading nullifies the whole point of these digital commodities. The civilian response to this is yet to be seen.