The Supreme People’s Procuratorate of China, the country’s leading legal agency, issued a series of warnings and opinions on Monday about non-fungible tokens (NFTs), highlighting the risks posed by the country’s NFT markets, noting new legislation is needed for the emerging asset class, and stating NFTs share some attributes of virtual properties.
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Fast facts
- The current NFT market in China is in its early stages and lacks industry standards and government regulation, according to the commentary published in the Procuratorate Daily, the official newspaper of the agency.
- NFT trading in China poses multiple financial and social risks, including price manipulation, illegal fundraising, scams, and more, wrote Wang Xia-fen, one of the authors of the article and a public prosecutor. Wang noted that some so-called “NFTs” in the market are fakes and not minted on blockchains.
- Despite the risks, the author acknowledged the potential of NFTs to boost the developments of the…