China Targets NFT Market After Blanket Ban on Crypto, Here’s Everything You Should Know

China Targets NFT Market After Blanket Ban on Crypto, Here’s Everything You Should Know

The latest development in the Chinese crypto crackdown saw the authorities limit Non-Fungible Tokens (NFTs) to mere digital collectibles, i.e., they cannot be traded for-profit anymore, levying a ban on NFTs as part of the decentralized business. According to the Chinese Journalist, Colin Wu, the regulatory framework around NFTs is next in line with strengthened supervision of NFT markets.

Exclusive: Chinese regulatory authorities are strengthening the supervision of NFTs and have interviewed major Internet companies. NFTs are no longer allowed to be used, but instead are digital collectibles.— Wu Blockchain (@WuBlockchain) October 23, 2021

Furthermore, authorities have also interviewed eminent Internet companies to assure that NFTs cannot be used for anything other than virtual collectibles. Nevertheless, the NFT industry will not go down without a fight. While China’s internet companies continue to launch NFT trading platforms, commercial players like McDonald’s are also entering the tokenized Industry regardless of pressure from the authorities.

“However, Chinese Internet companies are actively entering the NFT field. Tencent and Alibaba have both opened NFT trading platforms…McDonald’s China, and DHL China have just issued their first NFTs.”, Wu tweeted in a thread.

McDonald’s China NFT

Earlier this month, burger giant, McDonald’s China launched its first Non-Fungible Token (NFT), called the “Big Mac Rubik’s Cube”, commemorating the franchise’s 31st anniversary in the Chinese mainland market. Furthermore, the company’s NFT is inspired by the infrastructure of McDonald’s new headquarters building on the west bank of Shanghai, celebrating the expansion of the burger empire in the Chinese mainland.

“McDonald’s is a young and trendy brand that has always paid attention to fashion trends and cutting-edge technology. I am very happy that McDonald’s has become the first domestic restaurant brand to release NFT. McDonald’s China’s new headquarters building is a brand-new development of McDonald’s China. Milestones. At this special moment, we use the form of NFT to share McDonald’s innovation, digitalization and trend art with employees and consumers.”, said Zhang Jiayin, CEO of McDonald’s China.

While targeting McDonald’s exclusive NFT venture, the authoritarian government of China also seeks the company to facilitate China’s CBDC promotion by expanding digital yuan use across its chain. The Chinese government’s aim is to completely wipe out crypto from its territory and replace it with the centralized digital yuan.

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