According to the Chinese government, the number of NFT-related complaints surged by an incredible 30,000% in 2022, reaching 59,700 unique complaints. In 2021, the agency received only 198 complaints regarding digital collectibles, whereas in 2020 there were virtually none.
The surge in NFT-related complaints in China has been linked to several factors, including the regional market’s self-regulatory framework. Without the assistance of the government, the Chinese NFT market is dominated by a coalition of big technology firms opposed to secondary trading.
Since the Chinese government announced a blanket ban on digital currencies, the local non-fiat currency industry has grown fast and unrestrictedly. Others are keen to capitalize on the economic potential of digital collectibles, even though some authorities have expressed worry about the industry’s legal status.
Feng Qiya, a member of the Chinese parliament, wishes to make NFTs the primary topic of discussion at the nation’s most important political conference, known as Two Sessions, to regulate the industry. The purpose of Feng’s proposal is to prohibit the national “financialization and securitization” of NFTs.
Tencent Holdings’ (NASDAQ: TCTZF) Huanhe, the NFT marketplace, ceased operations recently owing to an internal dispute. Several Chinese non-financial firms are relocating to Hong Kong and other locations in search of legislative certainty to develop and give services to new consumers.
Content Source: coingeek.com
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