China warns of NFT-related financial risks

China industry bodies issued guardrails to curb the use of the digital asset and prevent the popular marketplace from overheating. — Bloomberg

China warned of financial risks associated with non-fungible tokens (NFTs), as three industry bodies jointly issued guidelines to prevent the digital asset market from overheating.

NFTs are ownership certificates of a unique digital item such as a video, recording, or cyber artwork. Such digital collectibles are gaining traction in China and have been embraced by tech companies including Ant Group and Tencent Holdings.