The Chinese messaging platform Wechat is said to have blocked accounts tied to non-fungible tokens (NFTs). The crackdown’s goal is to prevent the impacted accounts from being used to promote NFTs.
The Crackdown on Digital Assets Is Getting Tougher
Wechat, a Chinese messaging platform, recently announced that it had terminated certain accounts tied 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 help to 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 digital asset crackdown, which began in 2021.
Since mid-2021, Chinese authorities have been cracking down on bitcoin miners and cryptocurrency exchange companies, according to various reports published by Bitcoin.com News. Some crypto miners and platforms are thought to have fled mainland China as a result of the crackdown.
Public Accounts That Have Been ‘Rectified’
While it is unclear whether the crackdown has totally stopped Chinese individuals from trading or mining cryptocurrency, according to a BBC story, Chinese authorities are now eager to add NFTs to the list of prohibited operations. The same story went on to explain why, citing an update from the Wechat team as follows:
[Wechat] has lately standardised and corrected public accounts and tiny programmes for digital collection speculation and secondary sales.
Wechat further stated that the actions taken against the now-“rectified” accounts were carried out in compliance with applicable national rules.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.