Chinese tech companies Ant Group, Tencent, and JD.com signed an alliance to equally regulate their non-fungible tokens (NFTs), along with government organizations. The agreement took place on Sunday, October 31 at the first Self-Discipline Convention of the Creative and Digital Cultural Industry of China.
This convention was born in order to promote original digital art works through blockchains, according to the Chinese financial news agency Sina. The goal is to maintain the integrity of works in non-fungible tokens, which cannot be replicated, thus protecting copyright.
As a first step, the convention established parameters to self-regulate the growing NFT industry.. This initiative seems to respond to the pressure that companies located in China have been under since the government established several prohibitions on the cryptocurrency ecosystem.
This year the prohibition on the purchase, sale or use as a means of payment of any cryptocurrency in China has been reiterated, as well as mining. In this context, it might be thought that NFTs could be censored also, which is why different industry organizations came together to regulate the activity and prevent this from happening.
NFT companies in China seek to boost the market and avoid bans. Source: Pexels.
At the meeting Some entities of the country’s artistic industry were also present. For example, the Academy of Fine Arts, the Hunan Museum, the Animation Studio of the CCTV broadcaster, and the National Copyright Alliance.
Chinese companies unite to stop the government from banning NFTs
To prevent NFTs from being censored in China, the companies have made certain changes. In addition to developing joint self-regulation, have removed the words “non-fungible token” or “NFT” from their websites, replacing them with “digital collections”. In this way, it seems that they mislead the government’s gaze.
Even AntChain, Ant Group’s blockchain developer, reported that it “conducts its digital collectibles business in strict compliance with laws and regulations” and that it “opposes NFT’s price speculation.” It almost seems that they talk about NFT as if it were a different asset.
In some ways, this situation was confirmed by Yifan He, the director of Red Date, a government-backed blockchain network. The head of this organization declared that the industry is trying to distance its digital assets from cryptocurrencies, as found by Coindesk.
At the moment, trading and exchanging NFT is still legal in China, despite the country banning the cryptocurrency market.
This is in addition to other signals that China has given about possible easing (or exceptions) to the bans. For example, the government recently carried out a public consultation that, as . reported, seeks to know the opinion of the inhabitants about the prohibition of Bitcoin mining.
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