Alipay and Tencent have issued NFTs? What does regulation look like?

This year, Alipay and Tencent have both issued NFTs, and I heard that JD.com and Byte will also issue them.

Are they sending NFTs or "digital collections"?

In nature, is it a digital artwork or a token?

This needs to be clarified, otherwise it will be difficult to deal with violations.

Like the previous two, this article is still answered in a question-and-answer format.

Q: I think Alipay and Tencent have both released NFT products? Can you show me what it looks like? "

A: Alipay sells NFT jointly launched by its own and artists through its app "AntChain Fan Granule".

For example, the dinosaur painting by artist Zhao Chuang I bought above cost 9.9 yuan.

He sold 6,000 copies of his painting that was exactly the same. Fortunately, I quickly grabbed one, and I grabbed the 2,025th.

After buying it, when you enjoy it, you can watch the painting keep turning and turning...

To be honest, I don't feel that way of appreciation...

This painting can also be 下载, the official said, can "collect, study, research, appreciate, 展示..."

I will show you:

It still looks like it's worth 9 bucks 9.

There is also an option 转赠, after clicking, it says that my collection is not enough for 180 days and cannot be transferred...

Another option is 使用to make the skin of the payment code. (I don't really have the will to show this off to merchants though...)

Another option is 证书to click on it and it will look like this:

It shows that the creator Zhao Chuang mint the painting first, and then transferred the painting to me, and there is also a transaction hash, which seems to be stored on the blockchain.

Q: Let me have a look at Tencent's too.

A: Tencent uses the "Magic Core" APP to sell. However, there are very few products launched, unlike Alipay which sells every day.

On August 20, 2021, they have a product called "Wanhua Mirror" Digital National Illustration (artist Zhou Fangyuan's work), 56 collections, each of which seems to be 56, each 118 yuan, sold out instantly.

And then there's this product, which appears to be released on October 22:

I don't know when this one started to get it for free, but I didn't get it anyway.

But it doesn't matter, you can download it if you can't get it.

I just downloaded one:

According to the analysis of my last article ¹ , Tencent should not care about what I download and display.

After all, the real value is the 500 recorded on the blockchain.

Q: Is Tencent also on the blockchain?

A: Let’s first look at the official description of this product from “Phantom Core”:

It seems that it does exist on the blockchain. The "Zhixin Chain" is the alliance chain built by Tencent and other enterprises.

The NFT products on "Magic Core" are also not transferable. (There is no "transfer" option at all)

Q: Are NFTs on Alipay and Tencent different from cypherpunks and boring apes?

A: The same is that they all use blockchain technology.

The difference is:

1. None of the blockchains they use is Ethereum.

"Ant Chain" and "Zhixin Chain" are not public chains, but alliance chains.

2. They are all traded in RMB.

3. After the user buys, they cannot trade again. (There is also a time limit for transfers)

4. The user does not have a private key and lacks the ability to dispose of the purchased collection at will.

Q: Can I see their transaction information on the blockchain?

A: Not easy.

I bought collectibles on Ant Chain, and I also know the transaction hash, but I really don’t know how to check the information stored on Ant Chain. I think Ant Chain is a consortium chain, so not everyone can read it. watch. (This is different from Ethereum, the information of Ethereum can be checked through the Etherscan website)

Anyone who knows how to see it can teach me.

Q: I also want to buy a digital collection to try it out. How can I buy it?

A: This is simple. Just search for "AntChain Fan Granules" on Alipay. They are sold every day, usually at 9.9 yuan each.

The one from Tencent, you can download a "phantom core" APP, which occasionally sells or has event delivery, but I didn't catch up.

Q: Why have they renamed their NFTs to "Digital Collections" now?

A: I think that the one they are selling at present is a little bit different from the real NFT, so I am embarrassed to call it NFT.

In addition, it may be that NFTs are reminiscent of "hype", so let's keep a low profile, so as not to cause trouble.

Tencent Magic Core told the "Blockchain Daily" reporter: "Tencent Magic Core has always been committed to the implementation of the digital collectibles business under the compliance framework, and the digital collection business on the Magic Core platform adopts the user's full-process real name and content chain. We will not open the transfer of digital products between users, and resolutely resist violations of laws and regulations related to virtual currency-related activities.” ²

Tencent Magic Core further stated: "The business logic of Magic Core's digital collections is completely different from the internal logic and extension of the overseas unregulated NFT business, so this name change is once again to express to the public the high standards and compliance of our business. strict requirements."

Ant Chain told reporters: "We firmly oppose all forms of digital collection hype, and firmly resist any form of illegal activities in the name of digital collections that are actually virtual currency-related activities; resolutely resist any form of digital collection commodity prices. Malicious hype, use technical means to ensure that commodity prices reflect the reasonable market demand; resolutely resist any form of illegal activities such as equity transactions and standardized contract transactions of digital collections, and oppose the financial productization of digital collections.”

On the AntChain fan tablet, only holders of digital collections are supported, and they can be donated to eligible Alipay real-name friends for free after holding for 180 days. Ant said, "It needs to be emphasized that, according to legal requirements, the transfer function does not support any form of disguised hype, and Ant Chain hereby reminds everyone to pay attention to identifying the risk of online fraud."

Q: How do they define "digital collections"?

This is what Tencent said. It seems that although the owner cannot transfer and dispose of assets at will, at least the "ownership record" exists on the blockchain.

Q: Are there any other NFT platforms in China?

A: My treasures and NFT China are also in my sight. Of course, they are all settled in RMB.

"Secret treasure" is still a bit interesting. He uses the public chain Nervos and has a unipass wallet. Although it is not as intuitive as the little fox, it has the concept of private keys after all. Interested to see their explanation of their own ^wallet3 .

"Secret treasure" looks like this (WeChat applet):

I bought an NFT on it:

The receiving address inside is my address on the Nervos public chain.

I also went shopping for NFT China, and the things were a bit expensive, so I didn't buy them.

As for which public chain he is on, and whether the user has a private key, I don't know. Interested students can explore it.

Q: What is the country's current attitude towards NFTs?

A: At present, my country's regulatory agencies are mainly cracking down on "virtual currency" mining and trading. NFT is more like the application of blockchain technology, and there are no clear regulations on supervision.

Q: I know that the country does not allow the issuance of tokens. Does NFT count as tokens?

A: I don't think so. (But I said it doesn't count)

This needs to be analyzed in detail. Technically, both FT and NFT are tokens, but in terms of financial attributes, they are completely different.

Homogeneous tokens are usually issued in the order of tens of millions to billions. The issuer attracts people to subscribe in fiat currency or other virtual currencies, and has obvious financing properties. But although NFT is a token, it is actually the code name of digital artwork, and each token corresponds to an artwork (the same painting sells 8,000 copies, it is also 8,000 artworks).

In order to further clarify this concept, let's take a look at what the "Announcement on Preventing the Risk of Token Issuance and Financing" issued by the People's Bank of China in 2017.

First of all, note that the title is very clear, this article mainly prevents "financing risks". The current domestic NFT sales is to sell a piece of art. Although it is thousands of copies, it is not for financing, but for the creator of the art to make some money.

Secondly, note that the original text says: "Token issuance financing refers to financing entities raising so-called 'virtual currencies' such as bitcoin and ether from investors through the illegal sale and circulation of tokens, which is essentially a kind of unauthorized public disclosure. The financing behavior is suspected of illegal sale of tokens, illegal issuance of securities, illegal fundraising, financial fraud, pyramid schemes and other illegal and criminal activities.”

In addition to not allowing financing through tokens, it is also emphasized here that the so-called "virtual currency" cannot be raised from investors. Therefore, these "digital collections" in China are all sold in RMB, otherwise it is illegal, because the state has repeatedly emphasized that no goods can be paid with "virtual currency".

Finally, note that the original text emphasizes: "The tokens or 'virtual currency' used in the financing of token issuance are not issued by the monetary authorities, do not have monetary attributes such as legal compensation and compulsion, do not have the legal status equivalent to currency, and cannot and will not It should be used as currency in the market."

The meaning of this paragraph is that "tokens" cannot be regarded as currency. And NFT has no such ability at all, because no one has thought about it, and it is impossible to use a digital "Dunhuang mural" or "dinosaur painting" as currency, which is too funny.

Therefore, the essence of this article is to prevent three points: anti-financing, anti-money raising, and anti-currency exchange. ("coin" here refers to "virtual currency")

At present, my country's regulatory policies take risk prevention as an important starting point. According to the above analysis, the development of NFTs in my country at this stage has not yet produced enough risks to be vigilant. Therefore, it is worthwhile to observe and observe such new things. Early identification and shot.

However, it should be vigilant that the fragmentation of NFT and the combination of NFT and Defi have obvious financial attributes. If domestic NFT develops to this stage, it is impossible for supervision to sit idly by.

This was rectified ten years ago. Although there was no blockchain at that time, there were many platforms for packaging and trading artworks, postal cards and other commodities. Because of their obvious financial attributes, Document No. 38 in 2011 The "Decision of the State Council on Cleaning Up and Rectifying Various Trading Places to Effectively Prevent Financial Risks" and the 2012 No. 37 document "The Implementation Opinions of the General Office of the State Council on Cleaning Up and Rectifying Various Trading Places" were successively issued. There are exclusionary regulations for equal share issuance and standardized contracts. Violation of one of them should be cleaned up and rectified.

Q: Is it feasible to open an NFT trading platform in China, and are there any regulatory requirements? "

A: It is recommended to read this article by Xiao Sa: Domestic NFT, compliance is expected

However, this article is more like a persuasion post.

I think the most important point is to record in accordance with the "Regulations on the Management of Blockchain Information Services".

Q: I am a programmer, and I am not interested in distribution, supervision, etc. I just want to create an NFT with a contract, can you teach me?

A: No problem, wait for my next article.

The views expressed in this article are solely those of individuals and not affiliated with any organization.

Alipay and Tencent have issued NFTs? What does regulation look like?

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