China’s Hainan To Boost NFT Oversight As Digital Yuan Trial Ramps – Cointelegraph
Authorities in the Hainan province in southern China have vowed to increase oversight on the nonfungible token (NFT) space to “promote the healthy development” of the sector and to stomp out fraud and other associated risks.
Separately, the People’s Bank of China (PBoC) has announced that it is working on new features for its central bank digital currency (CBDC) pilot program, known as the digital yuan or e-CNY.
In a public notice posted on Jan. 29, Hainan’s market regulator and nine other agencies from the province outlined a lengthy plan to tackle the NFT sector moving forward.
A translation of the document reveals that the regulator is placing emphasis on promoting NFTs as part of the digital economy, particularly as a way to attract foreign investment in the Hainan Free Trade Port.
The provincial authorities, however, want to oversee the NFT market in a way that restricts “market chaos” such as misleading information, speculation, copyright theft, fraud, money laundering and fictitious value.
Some measures outlined include “severely” cracking down on false propaganda under current frameworks such as the “anti-unfair competition law,” preventing copyright infringement by guiding and urging internet platforms to remove such content, and cracking down on fraud.
An emphasis has also been placed on educating the public about the “risks and laws” of the sector so that they “purchase cautiously” and avoid losses due to wild speculation.
The Chinese government has ha