During an interview of utmost exclusivity, Feng Qiya, a distinguished Chinese deputy to the National People’s Congress (NPC), revealed her intention to propose establishing a regulatory system for digital collections during the highly anticipated annual Beijing meeting, also known as the “Two Sessions.” Her proposal aims to address the pressing need for a comprehensive framework that will govern the management and utilization of digital collections in an efficient and effective manner.
The Two Sessions event is a crucial political assembly in China, where the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) convene annually. Qiya’s proposal aims to provide a clear legal definition for digital collections, specifically Non-Fungible Tokens (NFTs). Meanwhile, Feng urges the government to act against NFT speculation, preventing digital collectibles from being treated as investment products and sold as securities. These measures would ensure the proper regulation of the digital asset market and safeguard the interests of investors.
Qiya was quoted saying:
While the digital collection industry is developing rapidly, the current supervision is still based on industry self-discipline and local regulations, lacking a top-down supervision system coordinated by multiple departments.
The report shed light on the distinctive nature of digital collections in China, setting them apart from their foreign counterparts. While virtual currency and anonymous transactions are the norms in other countries, the Chinese digital collectibles market operates on a real-name basis, with transactions conducted in RMB. This approach places greater emphasis on the intrinsic value of the content and collection rather than solely on financial gain.
Several Chinese NFT platforms have ceased operations following scrutiny from government agencies. In August of last year, Huanhe, the NFT marketplace owned by Tencent Holdings, suspended NFT sales and initiated refunds.
The Huanhe application, officially launched in August 2021, has ceased offering NFTs to its users due to heightened regulatory scrutiny. Huanhe was among China’s most sought-after NFT exchanges, with its new offerings selling out within moments of being listed.
