Authorities in China are now targeting non-fungible tokens (NFTs) after cracking down on cryptocurrencies last year. The Financial and Security Organization in China has warned against the financial risks associated with NFTs. The China Banking Association, the China Internet Finance Association and the Securities Association of China aim to raise awareness about the buying and selling of NFTs.
Crypto activities were outlawed in China last year and bitcoin mining was banned. These organizations say that they are interested in blockchain technology, especially NFT Wants to promote the development of Their apprehension remains about the use of cryptocurrencies such as Bitcoin, Ether and Tether as payment options. These organizations say that NFTs should not be linked to precious metals and financial assets like bonds and insurance. Also, NFTs should not be used as a medium for illegal activities like money laundering.
Crypto trading and mining was outlawed in China last year but the position regarding NFTs was not clarified. Last month, Chinese chatting app WeChat removed popular NFT platforms like Xihu and Dongyiyuandian from its search. The user policy of WhaleTalk, the digital collection platform of Ant Group linked to Alibaba, which is part of China’s largest business group, has also been changed and over-the-count NFT transactions have been allowed. Crime has been contracted. NFTs play a major role in increasing the trading of crypto assets. Last year, NFT sales were around $25 billion.
Using blockchain technology in NFTs, tokens of unique items are authenticated which are linked to reproducible digital assets. These can include art, music, in-game items, and videos. These can be traded online but cannot be duplicated. With the increase in the business of NFTs, the cases of scams related to them have also increased. In some such cases, NFT buyers have suffered huge losses. In the US in recent months, some major cases of fraud related to NFT have come to light.