Chinese tech giants Tencent Holdings, Baidu, JD.com, Alibaba Group Holding’s fintech subsidiary Ant Group and several other companies have adopted a “self-discipline initiative” to combat speculation in the NFT market. Reported by the South China Morning Post.

According to the document, platforms selling “digital collectibles” must provide real-name authentication for users when transacting with non-tradable tokens.

It is recommended to certify the activities of such services, paying special attention to the “security of core blockchain technologies” and “protection of intellectual property”.

The document does not explicitly mention the resale of tokens, the initiative obliges to avoid the creation of secondary markets for NFT trading and to “strongly resist speculation”.

The signatories also supported China’s current ban on the use of cryptocurrencies, emphasizing the need to “support legal tender only as denomination and settlement currency”.

The document prepared by private companies has no legal force. However, government agencies responsible for developing industry standards may consider these recommendations.

Recall that this is not the first deal on “self-discipline” in the NFT space for tech giants in China. A similar document was signed by them in November 2021 to avoid financial risks in the market.

In the fall of 2021, Tencent and Ant Group changed the term NFT to “digital collectibles”. Other platforms have also distanced themselves from the definition of “incomparable token”.

In March 2022, Ant Group and Tencent-owned NFT marketplaces updated their user agreements due to a lack of regulatory clarity. As a result, WeChat deleted a number of platforms’ accounts.

In June, WeChat banned NFT secondary trading and also announced “penalties” for accounts associated with cryptocurrency trading.

According to media reports, on the basis of the state blockchain platform Blockchain Services Network, an infrastructure will be established to support NFTs not related to cryptocurrencies. Prior to that, PRC officials stated that NFTs and metaverses could be bubbles and Ponzi schemes.

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