A group of industry associations in China issued a warning against the potential financial risks of non-fungible tokens, digital assets that represent real-world objects or intangible goods like a song.
The country’s banking, internet finance, and securities associations say NFTs must not be traded with cryptocurrencies, and they must not be used to create securitized products.
The financial associations say the value of NFTs lies in their potential to promote the growth of the creative and cultural industry.
They said users would first have to verify their real identities on these platforms before buying the collectables using China’s fiat currency yuan and are prohibited from reselling the works on secondary markets.