Home Business WeChat, China’s Main Message App, Suspends Accounts Linked to NFTs

WeChat, China’s Main Message App, Suspends Accounts Linked to NFTs

WeChat, China’s Main Message App, Suspends Accounts Linked to NFTs
Source: Business Insider

To avoid speculation in non-fungible tokens (NFTs), China’s popular WeChat messaging platform has blocked certain accounts tied to the digital assets.

According to the site, it has “rectified” accounts that it discovered were supporting NFT market speculation, which can contribute to push up prices.

Although cryptocurrency trading was outlawed last year, there are no rules prohibiting NFTs in China.

NFTs, like any other type of property, can be bought and sold in China.

As a result, they’ve been dubbed the “digital equivalent of collectibles.” They do not, however, have a physical form of their own, and experts have cautioned about market hazards.

WeChat replied on Thursday to local media reports that the accounts had been suspended.

“Recently standardised and corrected public accounts and modest programs for speculation and secondary sales of digital collections,” the site said.

This was done “in accordance with applicable national rules, in order to avoid the danger of speculation in virtual currency transactions,” according to the statement.

When contacted by news agencies, Tencent, the Chinese internet behemoth that controls WeChat, declined to speak more.

The action comes at a time when the Chinese government is closely scrutinizing the country’s technological sector.

Since last year, the industry has been targeted by the government, with crackdowns on ecommerce enterprises, online banking services, social media platforms, gaming companies, cloud computing providers, ride-hailing applications, and cryptocurrency miners and exchanges among the targets.

Despite all of the regulations, trading in NFTs remains legal in China. The digital assets, on the other hand, are based on Beijing-regulated technology.

Buyers must acquire NFTs in the local currency, the yuan, rather than cryptocurrencies, which are prohibited under the regulations.

The “one-of-a-kind assets” were sold for tens of thousands of dollars, if not millions of dollars.