China’s strict crypto policy continues as WeChat bans NFT accounts

China’s societal media and messaging app, WeChat, has banned much than 12 nationalist accounts linked to non-fungible token, oregon NFT, trading. Most of the banned accounts  beryllium to tiny and medium-scale NFT exchanges successful the country. 

A hunt for these accounts showed they nary longer beryllium connected the platform. Existing subscribers got a connection saying the accounts don’t person a “legal licence oregon licence to publish, disseminate, oregon prosecute successful related concern activities.” 

WeChat blocks entree to NFT accounts

Many person described this arsenic a preemptive determination by Tencent-owned WeChat to debar authorities scrutiny. Two of the accounts affected by the ban, Spirit Leap and Huasheng Meta, said that they were reported.

The prohibition comes arsenic NFTs and home integer collectibles person go much fashionable successful China, which has led to concerns of a speculative bubble wrong the cardinal government. Given that China didn’t hesitate to prohibition crypto assets, determination are fears that the aforesaid volition hap to NFTs.

In a written statement, a WeChat spokesperson stated that the level enforced “regulation and rectification connected nationalist accounts and mini-programs that speculate connected oregon resell integer collectibles.”

The typical further stated that nationalist accounts could “display and enactment the archetypal merchantability of integer collectibles,” however, immoderate promotion oregon resale is prohibited. Operators besides person to amusement “proof of practice with a blockchain institution that has been recognized by the Cyberspace Administration of China.”

NFT, crypto, and China

The prohibition connected the resale of NFTs is simply a effect of stringent crypto regulations successful the country. Lawmakers successful the state look focused connected preventing speculation that’s rife with integer assets.

The prohibition connected crypto successful China has been effectual truthful far, starring to a 90% drop successful Bitcoin trading measurement wrong the country. However, it has besides resulted successful an accrued absorption connected NFTs, which has been criticized by state-backed media successful caller months.

 In November, the People’s Daily questioned the NFT concern fever and described it arsenic lone hype. Other publications person called it a bubble.

The fearfulness of regulations has pushed Big Tech companies successful China, specified arsenic WeChat and Topnod, to censor NFT activities. Topnod, a integer collectible level owned by Ant Group, punished 56 accounts for reselling integer collectibles for profits.