In 2022, the National Internet Finance Association of China issued a statement to "resolutely curb the tendency of financialization and securitization of NFTs."

BlockBeats News, December 5 — Today, the China Internet Finance Association and six other associations jointly issued a “Risk Warning on Preventing Illegal Activities Related to Virtual Currencies and Other Matters.” According to the warning, virtual currencies cannot be used as currency for circulation within China, and Chinese financial regulatory authorities have not approved any real-world asset tokenization activities. Relevant institutions are prohibited from engaging in businesses related to virtual currencies or real-world asset tokens.

Previously, on April 13, 2022, the China Internet Finance Association had jointly issued an “Initiative on Preventing Financial Risks Related to NFTs,” which firmly aimed to curb the financialization and securitization tendencies of NFTs, strictly prevent risks of illegal financial activities, and consciously abide by behavioral norms. The joint appeal called on member institutions not to directly or indirectly invest in NFTs, and not to provide financial support for NFT investments. It also prohibited weakening the non-fungible characteristics of NFTs through methods such as splitting ownership or batch creation, which would in effect constitute token issuance financing (ICO). NFTs were also not allowed to contain securities, insurance, credit, precious metals, or other financial assets in their underlying commodities, in order to prevent disguised issuance and trading of financial products.

After the NFT market gradually cooled off starting in March of that year, it entered a bear market. The FTX collapse in November further drained funds and market information from the bear market; since then, the NFT market has gradually become “unattended.”