On May 15, the Supreme People's Procuratorate of the People's Republic of China the state agency responsible for legal prosecutions shared its views on the non-fungible token (NFT) market. In an article, the three authors outline prosecutors' views on market ris ks and Reasons for combating them more aggressively.
The article focuses on the "securitization" trend of NFT, that is, a copy is shared ownership by multiple users. In the author's opinion, this no longer meets the criteria of non-reproducibility, indivisibility, and uniqueness. Among other threats, prosecutors believe that marketing methods such as airdrops, blind boxes, and limited sales have triggered "price increases" for NFTs. The author strangely combines aesthetics and economic analysis, mentioning the lack of "artistic beauty" and "reasonable pricing mechanism" behind the price rise of some irreplaceable products. The agency stated that marketing models such as rewards and dynamic rights and interests may also quickly evolve into illegal pyramid schemes.
Suggestions for addressing these risks include "combating criminal activity", paying equal attention to punishment and governance, and investing in risk research and legal awareness. The article stated that the national procuratorate will shoulder the mission of distinguishing between "true innovation" " and " false innovation" and protecting the former.
While Hong Kong has made steady progress in adopting cryptocurrencies, China has not changed its anti-cryptocurrency stance. Furthermore, the country appears to be taking a similarly hostile approach to AI. In early May, a suspect was detained by local authorities and arrested in China's Gansu region for allegedly using ChatGPT to generate fake news reports.
Chinese prosecutors believe that while the NFT market “has some potential,” it presents financial, security, and “legal” risks. Therefore, the market not only needs comprehensive governance, but also comprehensive governance. It needs to fight "pseudo-innov ation" .
