The Supreme People’s Procuratorate of China justified the targets for controlling NFT market activities and drew attention to the risks associated with this asset class.
In recommendations prepared for the country’s law enforcement agencies, the Supreme People’s Procuratorate of China (SPP) notes that the digital collection industry is in its early stages of development, and the industry norms and regulatory system have not yet been established.
Uncontrolled and disorderly development of the industry can lead to illegal fundraising, fraud, and malicious advertising.
Therefore, provincial law enforcement agencies need to address as soon as possible the many risks associated with the release and distribution of digital collections. <br
The SPP experts pointed out that NFT collections are a class of unique digital certificates and must meet the requirements of digital copyright protection, which will be preserved at all stages of the life cycle: purchase, sale and storage.
The agency recommends using the functions of the prosecutor’s office to suppress criminal acts committed under the guise of new technologies and formats generated by the development of information technology.
In particular, to oversee the activities of the administrative agencies that provide registration and oversight of the advertising and financial activities of all forms of NFT-related business.
“We may learn from relevant news reports that some digital collection platforms are using questionable marketing techniques to create hype and the impression in the marketplace that demand for the asset exceeds supply.
Despite the fact that the proposed collectibles not only lack cultural imprints and artistic beauty, but also violate copyrights.
There is no reasonable pricing mechanism or sufficient value support behind overpricing, and prosecutors should stop market bubbles,” the SPP recommendations say.
China’s National Blockchain Innovation Center opened in Beijing in early May.
The Center will be run by the Beijing Blockchain Academy, which has announced its intention to train more than 500,000 professionals to build “super-scale clusters of blockchain computing power.