The Hainan province government has issued a new directive that aims to strengthen regulatory scrutiny and risk control for digital collectible items.
On 30 January the Hainan Province Market Supervision and Administration Bureau led the issuance of the “Notice on Strengthening the Risk Supervision of Digital Collectibles” (关于加强数字藏品风险监管工作的通知).
The Notice stated that the risks and hidden dangers of fraud, money laundering, pyramid schemes, and illegal fund-raising in relation to digital collectibles cannot be ignored, as well as highlighted the need for stronger regulatory cooperation and the formation of a coordinated supervisory mechanism between departments.
The Notice also stressed that multiple measures should be taken to prevent the regulatory risks of digital collectibles in a comprehensive manner.
“All relevant departments and cities and counties should set up the supervision of the digital collectible industry, guide market players to operate legally and compliantly, and fully enjoy the dividends of the Hainan Free Trade Port,” said the Notice.