Chinese tech giants including Ant Group, Tencent, Baidu and are joining yet another self-disciplinary initiative on eliminating speculation of non-fungible tokens (NFTs), also known as “digital collectibles.”

See related article: China’s diktat against NFT flipping spawns an ingenious industry

Fast facts

  • The companies pledged to resist secondary trading and ensure real-name identification in a statement released Thursday by the China Cultural Industry Association.
  • The tech firms also pledged to curb the financialization of digital collectibles and to only permit trades in fiat.
  • Digital collectibles” is a phrase used in China to avoid reference to NFTs since state media started denouncing speculative activities related to the assets.
  • In October 2021, Ant Group, Tencent and vowed not to get involved with cryptocurrencies and would work to prevent speculation and money laundering risks in NFTs.
  • Beijing has yet to provide clear regulations for NFTs.
  • Users of official accounts on WeChat, the popular Chinese messaging app, face disciplinary action, including permanent bans, if they are found to be involved in flipping digital collectibles.
  • Earlier this week, Chinese NFT marketplace Yucang announced it is repurchasing assets due to lack of regulatory clarity.

See related article: Chinese marketplace repurchases NFTs, citing uncertain policies