The “ Notice of a Provincial Working Group on Cleaning Up and Rectifying Various Trading Venues on Holding a Risk Reminder Meeting in the NFT Field ” spread like wildfire on the Internet (when this article was published, the meeting may still be in progress or never started, and this article does not intend to question the authenticity of the screenshots from the Internet. The specific information is subject to the official response. But this does not prevent us from talking about the social governance of NFT hype), what does this mean for the NFT industry and the secondary market, and how does the “regulatory” agency guide the “thorny” The development of emerging industries, let’s listen to Sister Sa’s decomposition .
The secondary market is the hardest hit area
From the current notice, it can be understood that the provincial working group for cleaning up and rectifying various trading venues is still concerned about issues such as “speculation”, “fictitious fraud”, “potential financialization”, “illegal fundraising” and “illegal financial activities” . This shows that the above problems have attracted the attention of the management agencies and are ready to be reminded in advance, and subsequent direct intervention is not ruled out.
In view of the main responsibility of the “Working Group for Cleaning and Rectifying Various Trading Venues” is to clean up and rectify various licensed and non-licensed trading venues in accordance with existing laws and Circulars 38 and 37, it can be judged that this concern The focus is still on the secondary market , that is, letting small NFT buyers hype prices and dealers to create a hype atmosphere to form a hype culture.
Readers may be more concerned, can licensed institutions not do NFT listing transactions? This is broken down into two questions: 1. The license, what license, and what legal rank ; 2. The definition of NFT and the amount of copyrighted copyright.
Judging from the names of participating units, provincial trading centers and municipal trading centers are among the participants. In other words, it is already the top of the pyramid in the sequence of trading venues, with the highest local exchange license. Sister Sa checked its business scope, and it is basically positioned as an information intermediary platform. So, if NFT transactions are alienated into financial transactions, can these licenses help companies overcome legal difficulties? The conclusion is likely to be: no . Illegal operation of securities, futures, and insurance business, or illegal payment and settlement of funds from funds, or other illegal business operations that seriously disrupt the market order, a local exchange license is indeed not enough to support, and the crime of illegal business operation “is out of the question”. The minimum requirement for “criminal crime” is “national regulations”, that is, a financial license at the national level .
This is because the minimum requirement for “criminal” of the crime of illegal business operations is not to violate “national regulations”, then when the aforementioned business requires a national-level financial license in accordance with national regulations, if the local financial supervision department has not obtained the State Council’s financial supervision and management The business license issued under the authorization of the department cannot prevent the criminal risk of illegal business operation . Regarding the supervision of various local trading venues, it can also be seen from Article 33 of the “Regulations on Local Financial Supervision and Administration (Draft for Comment)” (published on December 31, 2021), which was studied and drafted by the People’s Bank of China in conjunction with relevant parties, ” Various local trading venues are established with the approval of the provincial people’s government, and the provincial people’s government or its authorized department is responsible for daily supervision. Local trading venues are not allowed to carry out continuous centralized bidding transactions, illegal securities and futures activities, and laws, administrative regulations, Activities prohibited by the State Department’s decision .”
On May 1, 2021, my country has officially implemented the “Regulations on Prevention and Disposal of Illegal Fund-raising”, which clearly states: “The state prohibits any form of illegal fund-raising, and insists on preventing illegal fund-raising. Principles.”, words and contents such as “exchange”, “trading center” and “financial management” are not allowed to appear in the names and business scope of enterprises and self-employed individuals (the existing trading centers, etc. are gradually verifying the situation, and some need to be cleaned up and rectified). ). That is to say, once the actual business is suspected of illegal business operation and illegal fund-raising, it is difficult to resist criminal law risks with a license alone , and the enterprise and directly responsible personnel still have the risk of being imprisoned .
Regarding the connotation and extension of NFT, we have written a lot in our articles, so I won’t go into details. Just a reminder, NFT itself is just a number plate, not the copyright itself, nor the copyright property itself . The NFT sold by many platforms only has an IP authorization period of 1-2 years. (Here, some courts are reminded not to give NFT property rights easily when they receive NFT disputes , otherwise short-term IP authorization cannot maintain the value of ownership, which may intensify conflicts , please think twice instead of arguing for bright spots )
The characteristics and governance of NFT hype
According to our observation, the most obvious feature of NFT hype is that it is all carried out online . Whether it is cryptic transactions on second-hand websites, testing each other in the community, or simply setting up an “official” secondary market for information matching or secured transactions, all of these have traces on the Internet. And these marks are an important starting point for cleaning and rectification .
Article 8 of the Regulations on Preventing and Disposing of Illegal Fund-raising expressly endows the local management agencies with an obligation: “A monitoring and early warning mechanism for illegal fund-raising shall be established”, which shall be incorporated into the comprehensive management system of social security, play the role of grid management, and use modern information such as big data. Technical means to strengthen the monitoring and early warning of illegal fund-raising. It is understood that many technical teams in the currency circle era are assisting in the construction and tracking of some early warning mechanisms. They are too familiar with this industry, and the current hype model of NFT belongs to junior players in their eyes. In other words, the evidence is already in the big net of control .
NFT individual players have left a message on the official account of Sister Sa’s team many times, asking if the digital collection of the A family can still be bought, whether there is room for appreciation of the digital collection of the B family, etc. Our answer is: if you just love this art form , ready to play or hold for a long time, we have no objection. But if it is just for short-term hype and waiting for a hundred times the currency, then it is better to persuade it. What ‘s more, some young people are still students , and it is not suitable to “gamble” with your parents’ hard-earned money for your studies , which will chill your parents’ hearts.
In other words, onlineization and younger users are the characteristics of NFT chaos governance, and the “regulatory” agencies will definitely seize these characteristics to carry out key regulation.
Formal NFT data collection platform and export to the market
The so-called formal NFT data collection platform refers to a relatively compliant NFT one-time minting and sale platform under the current laws, regulations and policies, and implements a longer transfer period to control the risk of speculation. To say whether the shock of the secondary market will have an impact on the formal platform, if not, it is impossible.
When everything goes down, sometimes friends in the NFT industry who insist on being a primary market will complain that “bad money drives out good money”. Indeed, human beings are almost innate in their desire to win and gamble. The secondary market stimulates the nerves of everyone. Even an old NFT player like me couldn’t help but take a look at whether the NFT I bought for research purposes at that time soared or smashed the price.
In fact, NFT holders still hope to have an official and compliant trading venue where they can find prices for their NFT digital collections. Faced with this demand, how to respond from the governance plan is worth exploring. Whether local exchanges can list and trade NFTs (digital artworks) that have transferred all the copyrights of their copyrights, identify the ownership rights embedded in NFTs, and allow some digital artworks to be tested first. Or provinces and cities are more ambitious and give “regulatory sandbox” support to allow some NFT issuers with good reputation and solvency to start innovation. Or give the ultimate solution, set up a national exchange center for digital collections , set NFT standards, and comply with various rights and interests, so as to truly reassure those who buy and those who sell. To block, it is better to dredge .
write at the end
Governing NFT hype is like cooking small fresh food, testing the wisdom of all parties . The impact of the epidemic on the economy is far-reaching, and cultural digitization is a national strategy. Therefore, if the NFT industry is blindly regulated, it will tie its hands and feet, and if it is left unchecked, it will harm consumers. It is worth thinking about what kind of governance plan to choose. This is not something that can be solved by bidding for a few topics in universities. Someone must be willing to work hard and make efforts for the healthy development of the NFT industry.
In short, it is necessary to prompt the risk, otherwise, there will be more and more players, and the risk awareness will be indifferent, and major events will occur; the supply of specific systems is also necessary. It is not easy for an industry to sprout and develop, and it would be a pity to easily deny it . The above is today’s thinking and sharing, thank you readers! !
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/what-does-it-mean-for-a-province-to-hold-a-risk-reminder-meeting-in-the-nft-field/
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