Xiao Sa: Will the third-party payment “break the supply” for NFT?

In the past few days, friends have come to ask, will the third-party payment company that cooperates with the NFT platform suddenly “cut off”? Sister Sa’s answer is: it is indeed possible . On this topic, we combine the experience and lessons of the past innovation industry to give you some reference.

Payment channels are the rigid needs of NFT platforms

It is true that the best payment method is the banking system. In view of the advantages of bank licenses, if the bank is willing to make payment and settlement for the NFT platform, then the platform will greatly reduce the red line risks such as “capital pool”. However, the difficulty lies in the fact that large and medium-sized banks have high internal control mechanisms and compliance requirements , coupled with ethical factors such as social responsibility, they often shy away from stakeholders and industries suspected of hype .

Some small local banks have their own financial problems; some have insufficient technological capabilities. During the ten years of online lending development, there were also financial technology companies that penetrated into banks, and even substantially controlled bank risk control and operations. At present, this kind of situation is being corrected, and the compliance requirements of local banks for their own business have been greatly increased .

The first echelon of third-party payment companies has passed the internal policy to “not serve” the NFT platform for digital collections in the applet, and even remove the applet. As a result, the NFT platform must find a four-party company to handle the payment channel problem on its behalf, and the merchant name often does not dare to reveal the digital collection or NFT vocabulary. There are also innovative echelons of third-party payment companies that provide payment services to the Shuzang platform. In a vertical comparison, it is basically still the efforts of several third-party payment companies that served the P2P platform back then.

The “Second Clearing” issue is a major legal thunderstorm

In the cooperation model between third-party payment companies and NFT platforms, the biggest thunder is the ” two clearing problem “. The so-called “Second Clearing” means secondary clearing and settlement, which means that after an institution with clearing and settlement qualifications settles funds to an unlicensed institution, the platform then settles the funds to its sub-merchant. clear”. In short, the “Erqing” problem is actually the unlicensed driving in the payment and settlement business .

According to Article 3 of the Measures for the Administration of Payment Services of Non-Financial Institutions, a non-financial institution providing payment services shall obtain a Payment Business License in accordance with the provisions of these Measures and become a payment institution. The so-called payment service, according to the provisions of Article 2 of the Measures, refers to a non-financial institution acting as an intermediary between payers and payers to provide some or all of the following monetary fund transfer services: (1) Online payment; (2) Prepaid card (3) Bank card receipt; (4) Other payment services determined by the People’s Bank of China. Among them, online payment refers to the behavior of transferring monetary funds between payers and payers relying on public networks or private networks, including currency exchange, Internet payment, mobile phone payment, fixed phone payment, digital TV payment, etc.

Obviously, if the NFT platform provides the service of transferring currency funds between the ip party as the payee and the user of the payer, then the business activity of the platform is actually a payment service . Therefore, since the platform itself belongs to a non-financial institution , then in accordance with this method, it is necessary to obtain a “Payment Business License”, otherwise it will involve “two clearing” issues.

Once the “two clearing” issue is involved and the platform drives without a license, then according to Article 47 of the “Measures for the Administration of Payment Services of Non-Financial Institutions”, the People’s Bank of China and its branches should order the platform to terminate the payment business , and at the same time be suspected of committing a crime If a crime is constituted, criminal responsibility shall be investigated according to law .

At first glance, it seems that all it takes is to terminate the payments business. But in fact, because the platform conducts illegal payment and settlement business without a license, it is directly suspected of constituting the crime of illegal business operation under Article 225 of the Criminal Law , and is suspected of the third illegal business operation, that is, without the relevant state authorities It is approved to illegally engage in fund payment and settlement business. At the same time, since the funds are completely controlled by the platform during the settlement process, the formation of a fund pool is often involved , so it may be suspected of illegally absorbing public deposits under Article 176 of the Criminal Law . If there is some fraud in the process, it may even be considered to be suspected of committing the crime of fundraising fraud under Article 192 of the Criminal Law , and the maximum penalty can be life imprisonment.

Therefore, although the “Administrative Measures for Payment Services of Non-Financial Institutions” in terms of administrative responsibility is only an understatement, and there is no substantive punishment, in essence, the criminal risk brought about by lack of qualifications is very high . It is said that in terms of payment, “Erqing” is the landmine that should be most vigilant, and a little carelessness may fall into the abyss.

Suspension, a real possibility

Judging from the contracts signed by the existing third-party payment companies and the NFT collection platform, the legal lady of the third-party payment company usually adds “in case of regulatory-related policy changes” in the second half of the “force majeure” clause, and even puts ” “Window Guidance” is written into the contract terms. That is to say, once the regulatory policies of the state, localities and even some departments change from permissive to discouraged, then third-party payment companies can withdraw from the cooperation unscathed and cut directly on their own public accounts and media. This is self-preservation, and it is understandable. The platform cannot stop it and cannot stop it.

So, will regulatory policy change? Judging from the current situation, bad money drives out good money, and the secondary transactions of some platforms gradually show the style of the international currency circle, which is a dangerous signal. Pure first-level sales and self-suppressed transfers have no major legal flaws . The status quo is at the critical moment of “arm-wrestling”. If the media reports that NFT platforms are running away every day and college students are addicted to playing digital collections, in the case of unfavorable public opinion, the days of NFT digital collection platforms will be very difficult, and even in the second half of the year, there will be “going to the sky”. “NFTization” , platforms that yearn for compliance will give themselves a dazzling array of aliases, and resolutely draw a clear line with NFTs. At that time, third-party payment companies will also “know the current situation and be a hero . “

I remember that when I was studying, I took “Behavioral Finance” as an elective. I hope that in the process of NFT localization, a dynamic balance can be formed with the efforts of all parties. If the supply of NFTs is cut off across the board, it will force some platforms to switch to the international version, so as to adopt the public chain idea to use USDT for settlement , the industry that could have been regulated by publicity will be squeezed to survive underground, increasing judicial costs, and eventually it may become The next P2P, the former “guest”, will eventually become a “prisoner”.

write at the end

It is undeniable that the supply of financial products for domestic residents is relatively scarce. People do have a speculative mentality and want to make money by speculating on shoes, speculating in medieval jewelry, speculating in NFTs, and speculating in literary games. But since human nature is like this, repression is worse than dredging. The “pragmatism” in our brains often jumps out and turns into a “ruler”. It seems that it is useless if it does not bring practical benefits to the current society. This “only pragmatism” is wrong, and history will personally verify it.

Readers may think that Sister Sa is too far away. From a vertical perspective, NFT is not the first, nor will it be the last. Innovation has always acted as a “destroyer”, emphasizing that innovation must allow trial and error and give space. Although third-party payment companies are trying to make money, it is undeniable that they have objectively supported the realization of innovation and deserved credit. Sister Sa kindly reminds third-party payment companies to beware of the risk of accomplices in the crime of helping trust and illegal business operations, and pay attention to their own protection .

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/xiao-sa-will-the-third-party-payment-break-the-supply-for-nft/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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