China WeChat suspends accounts that were linked with NFTs

To prevent speculation in digital assets, WeChat China has suspended some accounts associated with non-fungible tokens (NFTs). According to a search by the South China Morning Post, at least a dozen WeChat public accounts, among others, have been suspended during the last two weeks

wechat app
WeChat [Photo credit: BBC]

Chinese social network WeChat, owned by Tencent Holdings, has more than 1.2 billion users. It has frozen multiple accounts that market digital collectibles, or non-fungible tokens (NFTs) as they are called in China. These tokens cannot be purchased or sold with cryptocurrency.

According to the platform, it has remediated accounts that were promoting NFT speculation, which can cause prices to rise. In China, there are no specific regulations against NFTs. Nevertheless, authorities banned mining and trading cryptocurrencies last year.

China’s WeChat Statements

In response to reports from local media that the accounts had been banned, China WeChat issued a statement Thursday evening.

Platform officials stated that the platform “recently standardized and rectified public accounts as well as small programs for speculation and secondary sales of digital collections”.

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Since last year, the sector has seen a large number of crackdowns, including those on e-commerce firms, online financial services, social media platforms, gaming companies, cloud providers, ride-hailing apps, and cryptocurrency exchanges.

Trading of NTFS is legal in China

Despite all the measures, the trading of NFTs is still not illegal in China. However, the digital assets are built using technology that is regulated by Beijing. NFTs can only be purchased in the yuan, as opposed to cryptocurrencies, which are not allowed. Thousands and even millions of dollars have been paid for “one of a kind assets.”

Big Tech companies have sought to keep a tight lid on NFT-related activities to comply with regulations. NFT operators have been censored since late February when WeChat suspended TheOne.art, a local digital collectible platform. This program has since been reinstated.

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