The Communist Party of China wants to control NFTs
As investors continue to speculate on non-fungible tokens, the Economic Daily, a mouthpiece of the Chinese Communist Party, has urged for tougher regulation of non-fungible tokens (NFTs).
The Economic Daily claimed that NFTs should not be treated as cultural or creative products, instead being controlled as a money, commodity, or security.
Because China frowns on speculating in the developing sector, the term "digital collectibles" is a euphemism for "NFTs."
The post chastised NFT trading platforms for running resale markets and warned buyers that the "rug could be pulled at any time."
Ironically, this is happening at a time when state-run television stations are starting their own NFT marketplaces.
With Shanghai Securities' NFTs growing in second-hand sales, the People's Daily, the CCP's official newspaper, and Shandong TV have their own marketplaces.
Meanwhile, in the face of regulatory uncertainty, China's tech behemoths have self-regulated, with Alibaba requiring a 180-day lock-in period before allowing resale.