China technical giants, including Tencent and Ant Group, have signed a document to stop secondary trading of digital collectibles and “self-regulate” their market activities, Chinese state media reported on Thursday.
According to Shanghai Securities News, the companies are among 30 companies and groups that agreed to the “Digital Collectible Industry Self-Discipline Development Initiative,” which will help stop secondary trading and NFT speculation.
The publication added that the Chinese Cultural Industry Association led the initiative and that other signatories include Baidu and JD.com.
Digital collectibles in the form of non-fungible tokens (NFTs) have become wildly popular worldwide in recent years, largely thanks to an active, highly speculative secondary market.
China does not have clear rules on NFTs, but the country has a long tradition of ending any speculation based on financial stability.
Still, many Chinese companies have been experimenting with digital collectibles recently, with Tencent and Ant Group opening up their online marketplaces.
The official Xinhua news agency also released a collection of NFTs last December. Mainland Chinese residents can only purchase NFTs using the yuan.
The pact also calls on the platform to ensure that its blockchain technologies are “secure and controllable” and sufficiently protect users’ personal information.