Chinese Communist Party Wants More Control Over NFTs, Calls for Urgent Establishment of Joint Oversight

IMPORTANT POINTS

  • NFT Enthusiasts in China Act Lightly
  • Although China Banned Crypto Activities in the Country, NFTs Remain Legal
  • Peter Thiel compared ESG to the CCP

China has banned crypto mining, exchanges and transactions, and while non-replaceable tokens (NFTs) are legal, the Chinese Communist Party (CCP) wants stricter restrictions on these “digital collectibles.”

Economic Daily, the mouthpiece of the CCP, which rules the country, argued in a report about treating digital collections as just “cultural and creative goods traded online.” Therefore, it is not enough to subject it to scrutiny by intellectual property and market surveillance departments.

The report described NFT as a financial technology product; therefore it must be regulated under strict supervision. It also said that digital collections contain commodity, currency and securities characteristics, which is why setting up a joint oversight mechanism is necessary.

The event was an opportunity for the CCP to secretly showcase its achievements since its inception in July 1921 in Shanghai Photo: AFP / WANG Zhao

It cited reports about the US Securities and Exchange Commission investigating the use of NFTs for illegal fundraising and as a money laundering tool. The mouthpiece of the CCP suggested several measures to prevent this.

It cited the launch of a “regulatory sandbox”, several platforms that communicate closely with regulatory authorities, and a series of pilot operations in a limited scope and time period as some of the possible measures.

The report noted that many companies in China, including startups and tech giants, have built NFT platforms to attract museums, artists and individual creators, with some well-known brands already exploring and releasing digital collectibles. It pointed out that the risk to consumers is high due to the risky speculation and weak pricing system of the NFT.

The new report came on the heels of a series of NFT launch announcements by the Industrial Culture Development Center of China’s Ministry of Industry and Information Technology and Chinese broadcaster Shandong Television.

The provincial broadcaster’s foray into the world of digital collectibles includes building its own blockchain infrastructure to support non-replaceable tokens and developing several Metavere products. Meanwhile, the Industrial Culture Development Center said it would mint and sell a batch of non-replaceable tokens in 2022 to spread the country’s industrial culture and eventually build an industrial Metaverse service platform.

At this year’s Bitcoin conference in Miami, German-American billionaire entrepreneur and political activist Peter Thiel, who co-founded the online payment company Paypal, compared ESG to the Chinese Communist Party. ESG, or Environmental, Social and Governance, is increasingly being applied by investors in their analysis to identify material risks and growth opportunities.

“I think ESG is a hate factory, it’s an enemy naming factory,” Thiel added. “What is the difference between ESG and the CCP,” said Thiel in his keynote address. Overall, his message underscores that ESG is the primary weapon against Bitcoin.

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