Nantong Municipal Finance Bureau: the general public must be alert to “digital collections ≠ high returns”

It is reported that the Nantong Local Financial Supervision and Administration Bureau recently released the “Nantong Municipal Financial Bureau reminds the public to be vigilant about” digital collections ≠ high returns “on its official website. The article points out that digital collections can be circulated by referring to laws and regulations such as the Copyright Law and the Property Law, but only for the purpose of use. According to the relevant regulations of the national financial supervision department, digital collections may not carry out speculation, money laundering, tokenization, financialization, securitization and other listed or private illegal transactions. Therefore, those who try to achieve wealth appreciation through investment in digital collections must keep calm. According to the relevant laws and regulations of China, the application for engaging in the operation of digital collection online trading platform requires “two licenses and one record”, namely, blockchain information service record, ICP operation license, EDI license, network culture operation license, etc. At the same time, we should pay special attention to that the scope of network culture operation license must be “digital collection”.

Interpretation of this information:

The Nantong Local Financial Supervision and Administration Bureau has issued a warning to the public about the risks associated with investing in digital collections. The bureau has highlighted that while digital collections may be circulated under certain laws and regulations, they should only be used for specific purposes, and should not be used for speculative or illegal transactions such as money laundering or tokenisation. The bureau emphasises that those who are seeking to achieve wealth appreciation through investments in digital collections should remain calm and follow the relevant regulations. In accordance with Chinese law, the operation of digital collection online trading platforms requires “two licenses and one record”. Investors should be aware of the requirements for blockchain information service record, ICP operation license, and EDI license. It is also important to note that network culture operation licenses must explicitly include “digital collection”.