The Chinese Communist Party wants more control over NFTs and calls for the establishment of a joint oversight as a matter of urgency

IMPORTANT POINTS

  • NFT enthusiasts in China tread cautiously
  • While China has banned crypto activities in the country, NFTs remain legal
  • Peter Thiel had compared ESG with the CCP

China has banned crypto mining, exchanges and transactions, and while Non-Fungible Tokens (NFTs) are legal, the Chinese Communist Party (CCP) wants tighter restrictions on these “digital collectibles.”

Economic Daily, the mouthpiece of the CCP that rules the country, argued in a report that digital collections should only be treated as “cultural and creative goods traded online.” Therefore, subjecting it to oversight by the intellectual property and market surveillance departments is not enough.

The report described NFT as a financial technology product; therefore, it should be regulated under strict supervision. She also said that digital collections have commodity, currency and securities attributes, so setting up a common monitoring mechanism is necessary.

The event was an opportunity for the CCP to display its achievements since its secret founding in July 1921 in Shanghai Photo: AFP / WANG Zhao

It cited reports about the US Securities and Exchange Commission investigating the use of NFTs for illegal fundraising and as a money laundering tool. The mouthpiece of the CCP proposed several measures to prevent this.

As possible measures, she mentioned the launch of a “regulatory sandbox”, various platforms that communicate closely with the regulatory authorities, and a series of trial operations of a limited scope and time.

The report found that many companies in China, including startups and tech giants, have built NFT platforms to attract museums, artists and individual creators, with some well-known brands already exploring and releasing digital collectibles. It pointed out that the risk to consumers is high due to NFT’s high-risk speculation and weak pricing system.

The new report comes after a series of NFT launch announcements by the Industrial Heritage Development Center of China’s Ministry of Industry and Information Technology and Chinese broadcaster Shandong Television.

The provincial broadcaster’s foray into the world of digital collectibles includes building its own blockchain infrastructure to support non-fungible tokens and developing several Metavere products. Meanwhile, the Industrial Culture Development Center said it will mint and sell a series of non-fungible tokens in 2022 to spread the country’s industrial culture and eventually build an industrial metaverse service platform.

At this year’s Bitcoin conference in Miami, German-American billionaire entrepreneur and political activist Peter Thiel, co-founder of online payments finance company Paypal, compared ESG to the Chinese Communist Party. ESG (Environmental, Social, and Governance) is increasingly being used by investors in their analysis to identify key risks and growth opportunities.

“I think ESG is a hate factory, a factory for naming enemies,” Thiel added. “What is the difference between ESG and CCP,” said Thiel in his keynote. Overall, his message underlines that ESG is the main weapon against Bitcoin.

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