The “Working Group of Fujian Province to Clean Up and Rectify Various Trading Venues on Preventing NFT Violations” has issued a “Reminder Letter” that has been widely circulated online. Four cautions on NFT-related transactions on Fujian Province trading platforms are cited in the document, including “no NFT transactions without authority” and “no covert engagement in NFT activities in violation of rules.”
On June 10, the Fujian Provincial-Local Financial Supervision and Administration confirmed the document’s authenticity. According to the article, Fujian trading venues are prohibited from engaging in NFT-related activity. The article’s definition of trading venues excludes several NFT platforms.
According to the source who validated the paperwork, they follow ‘7+4’ local financial monitoring.
Several NFT items had recently appeared, according to the paper. According to the organization, NFTs are easily connected to illegal activities, including fraud, speculation, and money laundering, posing a cascading risk. As a result, Fujian trading venues must now get authorization for NFT trades.
According to the letter, as trading venues participate in NFT issuance and trading on behalf of co-sponsors, strategic partners, technical support parties, and others, criminals may utilize trading venues’ compliance credentials to engage in unlawful activities. The trading venue will be banned, suspended for rectification, or if it is not publicly known.
Concerning investor protection, the group stated that all trading venues should counsel customers to develop suitable trading conceptions, resist speculation, and prevent inflated trade product prices from departing from the law of value. They should report illegal conduct as soon as they are discovered. In addition, the letter directs all trading platforms in Fujian Province to refrain from issuing or trading NFTs.