China Warns of NFT-Related Financial Risks
China warned on Wednesday of financial risks associated with non-fungible tokens (NFTs), as three industry bodies jointly issued guidelines to prevent the digital asset market from overheating.To get more
China finance news 2022, you can visit shine news official website.
NFTs are ownership certificates of a unique digital item such as a video, recording, or cyber artwork. Such digital collectibles are gaining traction in China and have been embraced by tech companies including Ant Group and Tencent Holdings.
In recent years, China's NFT market is getting increasingly hot," China's banking, securities and internet finance associations said in a joint statement.
Although NFTs could contribute to China's digital economy, they could also lead to speculative trading, money laundering, and illegal financing, said the trio, who also issued a joint ban on cryptocurrency trading last year.
NFTs must not be used in the issuance of financial assets such as securities, insurance, loans or precious metals, said the statement, published on the website of the China Banking Association.The associations also barred members from providing trading venues, or financing, for NFTs.
In addition, cryptocurrencies must not be used to price, or settle NFTs, and real name authentication is required for NFT issuers, buyers and sellers, for anti-laundering purposes, according to the statement.
Chinese technology giants including Jack Ma's Ant and video-games developer Tencent have opened online marketplaces, while a growing number of companies are exploring NFTs.Last month, Xtep International released its first digital collection of running shoes, and last year, the official Xinhua news agency issued a digital media photo collection via NFTs.
China’s top administrative authority said it would work to stabilize Chinese stock markets and boost economic growth, state-run Xinhua News Agency reported.
The financial stability and development committee of China’s State Council concluded Wednesday that it would take “concrete actions” to boost the economy in the first quarter, according to the report, which was also posted on the government’s website. Authorities will rely on monetary policy as well as new loans to achieve its goals.
The first: The number of active foreclosures (this is when the foreclosure process has begun on a seriously delinquent loan, but it has yet to be completed and liquidated) edged up by more than 7,000 in March—the first year-over-year increase in almost 10 years, according to mortgage technology, data, and analytics provider Black Knight.
Surging inflation and an oil-price shock have many economists drawing comparisons between today and the 1970s. For investors, however, the second half of 2018 could be a more informative comparison.
That was the last time both bonds and stocks both posted annual losses—the S&P 500 was down 6.2% for the full year, the corporate bond market lost 2.3%, and long-dated Treasuries lost 1.6%. And it was because the Federal Reserve was raising interest rates and tightening policy.
China Warns of NFT-Related Financial Risks
