Chinese messaging app, Wechat, has reportedly suspended accounts that are liked to non-fungible tokens (NFTs). The crackdown aims to stop the use of the affected accounts in promoting NFTs.
Wechat, the Chinese messaging app, recently acknowledged that it has terminated several accounts that were allegedly related to non-fungible tokens (NFTs). According to a BBC report, the suspension of the accounts is intended to prevent such blacklisted accounts from engaging in NFT market promotional activities that assist drive up prices.
Wechat’s targeting of NFT-promoting accounts appears to indicate that China, which currently lacks clear legislation against NFTs, is broadening its crackdown on digital assets, which began in 2021.
Since mid-2021, Chinese officials have been cracking down on Bitcoin miners and cryptocurrency exchange companies, according to several sources. Some crypto miners and platforms are thought to have fled mainland China as a result of the crackdown.
While it is unclear whether the crackdown has stopped Chinese citizens from trading or mining cryptocurrency, a BBC report claims that Chinese officials are now eager to add NFTs to the list of prohibited activities. The same story elaborated on the cause, citing an update from the Wechat team that stated:
[“Wechat] has recently standardized and rectified public accounts and small programs for speculation and secondary sales of digital collections.”
The platform stated that the action taken against the now “rectified” accounts was carried out in compliance with applicable national rules.
