China pledges to crack down on illegal fundraising in NFTs, metaverse

  • The Chinese government will continue to clamp down on illegal fundraising through NFTs and the metaverse, a top official has stated in an interview today.
  • Elsewhere, a Chinese province has cracked down on an illegal crypto mining farm and confiscated 190 mining rigs, worth $791,000 as BTC miners’ purge continues in the country.

Once known as the crypto capital of the world, China has turned on the industry and is today one of the most hostile countries for Bitcoin owners and miners. In its latest move, the Chinese government has pledged to pursue those using NFTs and the metaverse for illegal fundraising. Elsewhere, a Chinese province has seized 190 mining rigs that it claims were operating illegally.

In a work report released on Tuesday, the China Supreme People’s Procuratorate warned that those found to be fundraising illegally through NFTs would face severe punishment. Acknowledging the rise in NFT popularity, the Procuratorate director of financial and economic crime Zheng Xinjian said that the government has become concerned and will act on those that use them to flout the law.

China has banned cryptocurrencies for years, and in 2021, it reiterated this ban. However, NFTs aren’t illegal yet (unless they are paid for in cryptocurrencies), and neither is the metaverse. However, the government has been quick to warn Chinese investors to steer clear of these two industries as they are unregulated and are rife with crime.

In an interview today, Xinjian urged lawmakers to devise laws that cater to the emerging technology, claiming that the existing legislation and judicial interpretations are insufficient in handling NFTs and the metaverse.

While China takes a hostile stand towards the metaverse and NFTs, some of its peers in Asia such as South Korea are embracing the industry. As CNF reported, Korea recently pledged to invest $187 million in a national metaverse ecosystem that will promote the virtual growth of cities, media ventures, and more.

Read More: South Korea invests $187M in a national metaverse project

Elsewhere, the Development and Reform Commission in Guandong province has busted an illegal mining farm and seized equipment worth close to $800,000.

According to one local publication, authorities in the city of Guangzhou have been randomly inspecting the city for illegal miners. They busted the operation recently and seized mining rigs worth 5 million yuan ($791,000).

The authorities further revealed that the mining rigs were housed in a well-fenced homestead with high walls and a large gate, manned 24/7, to keep away any prying eyes. They further claimed that the operation had consumed over 90,000 kilowatt-hours over the 40+ days it had been operational.

About Author

Steve has been a blockchain writer for four years, and a crypto enthusiast for even longer. He is most excited by the application of blockchain to solve the challenges facing developing nations.

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