On Monday, Chinese internet and technology titans signed an agreement to ban cryptocurrency and digital collectibles (NFTs), as well as a pledge not to establish secondary marketplaces.
Tencent and Ant Group, according to the South China Morning Post, have joined a self-driven industry initiative to ban cryptocurrency and combat speculation.
According to the document signed by China’s largest tech firms, platforms that sell digital collectibles “shall require real-name authentication of those who issue, sell, and buy” the assets and “only support legal tender as the denomination and settlement currency.”
“Do not contain financial assets or unlicensed financial products, including securities, insurance, credit and precious metals, in blockchain-supported goods,” it added.
The National Internet Finance Association of China, China Banking Association, and Securities Association of China issued a joint statement in April this year prohibiting the use of NFTs in the issuance of financial assets.
The new initiative urged technology companies not to “create a centralised marketplace” for bidding, matching, or anonymous NFT trading.
In July of last year, the Chinese government banned Bitcoin mining.
It intends to issue its own central bank digital currency (CBDC), known as the digital Chinese yuan (e-CNY).
Last September, the country banned all cryptocurrency transactions and barred foreign cryptocurrency exchanges from operating within the country in 2018.
