China’s WeChat suspends some accounts linked to NFTs

The WeChat logo seen displayed on a smartphone with United States dollar currency in the background.

China’s popular WeChat messaging app has suspended some accounts linked to non-fungible tokens (NFTs), to prevent speculation in the digital assets.

The platform says it has “rectified” accounts which it found to be promoting NFT market speculation, that can help to drive up prices.

There are no regulations against NFTs in China, although the trading of cryptocurrencies was banned last year.

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

For this reason they have been touted as the digital answer to collectibles. However, they have no tangible form of their own, and experts have warned about risks in the market.

On Thursday, WeChat responded to local media reports that the accounts had been banned.

The platform said it had “recently standardized and rectified public accounts and small programmes for speculation and secondary sales of digital collections”.

It added that this was done “according to relevant national regulations, in order to prevent the risk of speculation in virtual currency transactions”.

The move comes as China’s technology industry has come under intense scrutiny by authorities.

The sector has seen a large amount of official action against it since last year, including crackdowns on ecommerce firms, online finance services, social media platforms, gaming companies, cloud computing providers, ride-hailing apps and cryptocurrency miners and exchanges.

Even after all the measures, the trading of NFTs is still not illegal in China. However, the digital assets are built on technology which is regulated by Beijing.

Under the rules, buyers have to purchase NFTs in the local currency, the yuan, rather than cryptocurrencies, which are banned. The “one of a kind assets” have been sold for thousands and even millions of dollars.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s