A one-party socialist country since decades, China has issued a stern warning against its citizens committing financial crimes using NFTs and Metaverse.
According to a work report released on Tuesday, the Supreme People’s Procuratorate warned of “severe punishment” for financial crimes such as money laundering and illegal fundraising.
China, in phases, managed to ban the complete use of cryptocurrencies and instead tried to push its own digital currency, yuan.
Although NFTs and metaverse are not banned as of yet, Chinese People’s Political Consultative Conference (CPPCC) member Zhang Ying addressed the need for regulation, citing serious speculation observed in the current state of metaverse.
China’s Two Sessions has also expressed concerns about the metaverse.
The speculation comes after Metaverse-related trademark applications reached 16,000 in late February, including tech giant Tencent filing for virtual concerts.
Though the government hasn’t made any significant decisions regarding NFT’S and metaverse, the government and state media continue highlighting the risks of the metaverse, discouraging people from investing into it.
A country striving for global leadership cannot possibly let its economy become decentralised, nor turn a blind eye to the swiftly developing blockchain-based community; thus China plans on developing its own NFT industry that is not linked with cryptocurrencies.
