Chinese Central Bank Plans to Regulate Metaverse and NFTs

Briefly-

  • China plans to supervise metaverse and NFTs.
  • Government official advises stiffer regulations for these digital innovations.
  • China has always revealed its anti-cryptocurrency stance to the public.

China’s leading bank has stated plans to include the metaverse and NFTs niche under the products it wants to keep monitoring. Anti-Money laundering unit director Gou Wenjun revealed that individuals might misuse these growing technologies to complete illegal undertakings. That was during the financial security summit. He added that leaving them without supervision can mean criminals utilizing the fast-growing revolutions to accomplish money-laundering activities.

However, the growing metaverse and NFTs craze has gripped China regardless of the nation’s public stand against digital coins. Recently, Beijing ordered a countrywide ban on cryptocurrency-related transactions while warning dodgers with sanctions. Besides that, China had launched crackdowns on cryptocurrency mining activities, citing environmental impacts.

The People’s Bank official stated that he is ready to improve cooperation among global financial intelligence agencies. That is to create a worldwide coalition aimed to fight crimes related to cryptocurrencies. He added that the AML Center would deepen info sharing. Moreover, it will cooperate with 60 foreign monetary intelligence agencies for crypto-crime investigation.

Wenjun proposed regulators to allow the agency to clarify supervisory responsibilities division, improve crypto transparency, and evaluate supervisory sandbox use to analyze and judge cryptocurrency nature and essence.

He also added that it is about time China strengthens its KYC protocols as far as digital coins transactions as concerned. That will ensure easy transactions by service providers.

Meanwhile, Metaverses appear to gain massive popularity over the past few weeks. ‘Metaverse’ means “no limits.” It is about a virtual world combining different technological aspects from games to augmented reality and much more. The innovation helps dApps connect with many platforms, allowing users to move virtually without hurdles.

The metaverse concepts have attracted players from different walks of life. Recently Facebook rebranded to Meta as the social media’s CEO reveals plans to introduce a virtual world within the platform. China has attacked the crypto market since long ago. Though the move has had impacts, market players appear not threatened by the nation’s strict rules on crypto innovations.

By testing – shutterstock.com

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