Feng Qia, a member of China’s parliament, is set to propose a regulatory framework for NFTs at an upcoming policy meeting. Two Sessions is one of the most important annual political gatherings in China, and this year the event will include a special discussion on digital collectibles.
According to the local report, Feng will specifically propose establishing a clear legal definition of digital collectibles. In addition, it will seek clear guidance on the governance of NFT trading platforms and stronger copyright protection. However, the Member of Parliament also wants the authorities to step up efforts to combat illegal NFT speculation in the Asian country, thus preventing “financialization and securitization” irreplaceable tokens.
China is one of the countries that has taken a tough stance on cryptocurrencies. However, authorities in the country have shown leniency when it comes to NFTs as they see their potential in the growth of the Chinese economy. However, the nation, like many others, has not formulated any rules to govern this new technology.
That’s something Feng acknowledges, noting that most of the regulations that exist around digital collectibles in the country come from savvy businessmen and local governments. Therefore, there is a need for proper space legislation and a top-down regulatory framework for many branches of government.
In addition to regulating NFTs, the two sessions will discuss how to build a digital economy
Ways to build a digital economy are also expected to be discussed during the Two Sessions. With this in mind, Chinese authorities should outline the nation’s economic plans for the coming year, when they will switch key roles.
Overall, despite the strong interest in NFTs as a potential economic driver, the trade in digital collectibles is strongly frowned upon in the country.
Recently, government agencies, government-backed organizations, and the media have criticized the financial risks associated with NFTs. This has forced China-based NFT platforms to either distance themselves from secondary markets or choose to develop overseas.
