The China Internet Finance Association once issued a statement in 2022 titled "Resolutely Contain the Financialization and Securitization Trend of NFTs."

**On December 5, the China Internet Finance Association and seven other industry associations jointly issued a risk warning targeting illegal activities tied to virtual currencies.** Key details from the warning: - Virtual currencies cannot circulate as legal tender within China. - No real-world asset tokenization activities have been approved by China’s financial regulators. - Relevant institutions are banned from operating any business related to virtual currencies or real-world asset tokenization. **2022 Background: NFT Risk Initiative** Back on April 13, 2022, the same association (alongside other groups) released an initiative to curb NFT-related financial risks. It aimed to: - Stop the trend of NFTs being financialized or securitized; - Strictly prevent illegal financial risks; - Encourage voluntary compliance with behavioral norms. Member units were jointly urged to: - Avoid direct or indirect NFT investments; - Refrain from providing financing for NFT investments; - Not weaken NFTs’ non-fungible nature (via ownership fragmentation or batch creation) to conduct initial coin offerings (ICOs); - Not issue quasi-financial products using financial assets (securities, insurance, credit, precious metals, etc.) as NFT underlying goods. **NFT Market Trend** The NFT market cooled from its March 2022 peak into a bear market. During the FTX collapse in November 2022, it further decoupled from capital and market information. Since then, the NFT market has gradually lost appeal.