The Risks of Investing in Digital Collections

02/27/2023 06:55 • Metaverse Matters • 98 views

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”.

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

Interpret the above information:

The message highlights the risks associated with investing in digital collections and the need for investors to exercise caution. The Nantong Local Financial Supervision and Administration Bureau advises the public to be vigilant about “digital collections ≠ high returns,” reminding investors that digital collections can be circulated for use, but not for speculation, money laundering, tokenization, financialization, securitization or other illegal transactions.

The article emphasizes the relevance of laws and regulations such as the Copyright Law and the Property Law in relation to digital collections. Investors should also note that the national financial supervision department regulates digital collections, and may not engage in any of the aforementioned illegal transactions.

The message further highlights the requirements for engaging in the operation of digital collection online trading platforms, which involves obtaining “two licenses and one record,” namely, blockchain information service record, ICP operation license, EDI license, network culture operation license and any other relevant permits. The scope of the network culture operation license must be specific to “digital collection.”

This message underscores the importance of being financially literate and reading government regulations and directives carefully before investing in digital collection trading platforms. Investors must also pay attention to the restrictions that apply to digital collections and ensure that they are not participating in any illegal transactions.

In conclusion, investing in digital collections may seem like an attractive option for creating wealth, but it comes with its risks. This message highlights the importance of being cautious, doing your research, and ensuring that all financial transactions are in compliance with applicable laws and regulations. It is essential to approach any investment with a critical mind and to always consider your financial goals and level of risk tolerance before making any investment decisions.

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The Risks of Investing in Digital Collections

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

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