Alibaba Group Holding Ltd – ADR’s (NYSE:BABA) cloud service could be launching a service to build NFT marketplaces for companies.
What Happened: Alibaba Cloud announced the launch of an “NFT Solution” in a tweet on June 8. The tweet in question has since been deleted.
“NFTs (Non-Fungible Tokens) are taking the digital art and collectibles world by storm on social platforms, and soon in the Metaverse,” the tweet read.
“Alibaba Cloud has launched the NFT Solution, which includes web hosting, digital marketing & content delivery to build your NFT marketplaces.”
It is unclear whether the blockchain used by Alibaba Cloud will support cryptocurrencies — the use of which has been banned in China since September 2021.
Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), Dogecoin (CRYPTO: DOGE), and other large-cap cryptocurrencies saw a sharp decline following the news.
See Also: IS CRYPTO BANNED IN CHINA?
September also saw a new Data Security Law come into effect in the region. The law prohibits the transfer of data across borders without seeking permission from the government.
According to an analysis from Skadden, companies found in violation of regulations concerning “core data” face penalties of up to RMB 10 million or $1.56 million, the forced shutdown of their businesses, and potential criminal liabilities.
Price Action: According to data from Benzinga Pro, the leading digital asset Bitcoin was trading at $30,361 at press time, down 0.19% over the last 24 hours.
