China News Service, April 13. According to the website of the Securities Association of China, the Internet Finance Association of China, the China Banking Association, and the Securities Association of China jointly issued an initiative on preventing NFT-related financial risks. The initiative proposes to resolutely curb the financialization of NFT securities. It is necessary to strictly prevent the risks of illegal financial activities.
In recent years, my country's NFT (Non-Fungible Token, non-fungible token) market has continued to heat up.
As an innovative application of blockchain technology, NFT has shown certain potential value in enriching the digital economy model and promoting the development of the cultural and creative industry, but at the same time, there are hidden risks such as speculation, money laundering, and illegal financial activities.
In order to prevent financial risks, protect the legitimate rights and interests of consumers, and maintain the healthy ecology of the industry, China Internet Finance Association, China Banking Association, and China Securities Association jointly call on member units to jointly launch the following initiatives:
1. Adhere to integrity and innovation to empower the real economy
Practice the concept of science and technology for good, choose application scenarios reasonably, standardize the application of blockchain technology, and play the positive role of NFT in promoting industrial digitization and digital industrialization.
Ensure that the value of NFT products is fully supported, guide consumers to consume rationally, and prevent inflated prices from deviating from the basic law of value.
Protect the intellectual property rights of underlying commodities and support genuine digital cultural and creative works.
True, accurate and complete disclosure of NFT product information to protect consumers' right to know, right to choose, and right to fair trade.
2. Adhere to the bottom line of behavior and prevent financial risks
Resolutely curb the tendency of NFT financialization and securitization, strictly prevent the risk of illegal financial activities, and consciously abide by the following code of conduct.
First, it does not include securities, insurance, credit, precious metals and other financial assets in the underlying commodities of NFT, and issues and trades financial products in disguised form.
The second is to not weaken the non-homogeneous characteristics of NFTs by dividing ownership or batch creation, and carry out token issuance financing (ICO) in disguise.
The third is not to provide centralized transactions (centralized bidding, electronic matching, anonymous transactions, market makers, etc.), continuous listing transactions, standardized contract transactions and other services for NFT transactions, and to set up trading venues in disguised form.
Fourth, virtual currencies such as Bitcoin, Ethereum, and Tether are not used as the pricing and settlement tools for NFT issuance transactions.
Fifth, carry out real-name authentication for issuing, selling and purchasing entities, properly preserve customer identity information and issuance transaction records, and actively cooperate with anti-money laundering work.
Sixth, do not directly or indirectly invest in NFT, and do not provide financing support for investing in NFT.
At the same time, the three associations call on consumers to establish correct consumption concepts, enhance their awareness of self-protection, consciously resist NFT speculation and speculation, be vigilant and stay away from NFT-related illegal financial activities, and effectively safeguard their own property safety.
If relevant illegal activities are found, they should be reported to the relevant departments in a timely manner.
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