There seems to be a crackdown looming for the NFT as WeChat, China’s most popular messaging service announced new rules to improve the supervision of non-fungible tokens.
According to sources, the platform has disabled NFT-related public accounts to comply with new regulations.
WeChat blocks several NFT-related accounts
WeChat, which has over 1.1 billion daily users, has announced new rules for digital asset issuing. According to section 3.24 of the amended “Code of Conduct,” any account participating in the issuance, trading, or financing of virtual currency shall face the consequences.
Also, Certain functions will be restricted for identified accounts, with the possibility of a permanent ban.
Profiles that provide secondary transactions of NFTs will also be dealt with in compliance with the amended rules, according to the updated rules. WeChat has reportedly blocked the official account of “NFTea Digital Tea Ticket” for failing to obey the rules. The profile was discovered performing secondary transactions on digital collections that users had created.
Earlier, WeChat had blocked a substantial number of NFT-related accounts. This move was made in response to the Chinese government’s increasing monitoring. However, the application did state that this decision was made to avoid risky digital asset trading speculation. WeChat also sent notifications to some NFT platforms, encouraging them to register qualification certificates to continue using the network.
China is a vocal opponent of NFTs
The platform’s banned accounts are to present a certificate of cooperation with a blockchain company. The Chinese Cyberspace Administration must register and approve the blockchain organization.
The Chinese government has been a big opponent of the country’s Virtual Digital Assets. It has already banned cryptocurrencies and their mining. In April, Chinese financial and security institutions started a project aimed at reducing the risks associated with digital assets. It mentioned that the NFT market may heat up in the future and that there are certain hidden risks associated with it, such as money laundering and speculating.
