China’s crypto crackdown is entering a new phase as it announces a crackdown on NFTs and the increasing widespread metaverse.
During the National Finacial Security Summit, the People’s Bank of China (PBoc) hinted they would monitor these assets shortly.
In a speech by Gou Wenjun, the Anti Money Laundering unit director at the PBoC, he highlighted the risks associated with the sectors remaining unregulated. China will now focus on regulating emerging technologies such as NFTs, the metaverse and the wider blockchain world.
China is cracking down on emerging technologies
WenJun also made it clear that people use emerging technologies for several reasons. He stated that people could be focused on profit. However, others might have a more sinister approach, using the technology for illegal activities.
Furthermore, he warned of the dangers if China leaves the metaverse and NFT markets unsupervised. He declared that it could become a tool for criminals to exploit.
Additionally, the respected government official wants the agency to “clarify the division of supervisory responsibilities, improve the transparency of virtual assets”.
It’s not looking good for the metaverse as this year China ordered a complete ban on all cryptocurrency related transactions. Authorities also began a massive crackdown on ‘crypto mining’, citing the environmental impact, amongst other things. The sudden law change caused many to shut up shop entirely or move business offshore.
It won’t be long before we determine whether the metaverse and NFTs will face the same fate in China.