Chinese Giants Alibaba, Tencent Require ID Checks For NFT Purchase

Chinese giants Alibaba and Tencent aim to bring more clarity to the NFT space and require ID checks for NFT purchases as we can see more today in our latest cryptocurrency news.

The Chinese giants Alibaba and Tencent as well as Baidu, Ant group, and JD.com last week issued a self-discipline development proposal for the digital collectible industry which will introduce real-name authentication for the users that will buy and sell NFTs. According to the statements, the signatories of the agreement noted and reaffirmed the existing regulation that will ban the use of crypto and noted the platforms offering digital collectibles should have to describe NFTs as supporting legal tender as the denomination and settlement currency.

The digital collectible platforms should hold all relevant regulatory certifications and should ensure the security of the underlying blockchain technology but also bolster intellectual property protection. The document doesn’t mention a resale of NFTs as the initiative pledges to avoid setting up secondary marketplaces for NFT trading and to resist speculation firmly:

“Different from most foreign platforms that apply NFT technology as financial products, domestic digital collections are more regarded as the category of digital cultural creativity.”

The latest initiative for china’s NFT spaces came from private companies and as such is not legally binding but it can mark a huge step ahead for more regulatory clarity. The state agencies responsible for developing these industry standards could take the proposals into consideration. The Chinese authoriteis cracked down on crypto businesses and not only ban transactions but force many BTC mining operators to move abroad.

The crackdown was not extended to the NFT space and China’s state-backed Blockchain Services Network announced to the creation of a new platform for launching tokenized digital collectibles while running on permissioned and non-public blockchain infrastrcuture with no crypto transactions allowed. The tech giants also launched their digital collectible markets built on private chains which allow purhcases with the Chinese yuan only and ban secondary trading.  The National Internet Finance Association of China as well as the Chinese Banking Association issued a guideline banning the use of NFTs in the issuance of securities and loans while also preventing the country’s financial institutions from facilitating NFT investments.