China’s major social media platforms and internet giants have updated their policies to limit or remove non-fungible token (NFT) platforms for fear of lack of regulatory clarity and government crackdowns.
China’s social media giant WeChat has reportedly removed some digitally collectable platform accounts due to rule violations. One of the touted NFT projects on the market, the digital collection platform Xihu No.1 was one of the removed platforms. Another platform, called Dongyiyuandian, has revealed that its official app has been banned, report Local everyday.
WhaleTalk, a digitally collectable platform launched by tech giant Ant Group, has also updated its policy to increase the penalties for using over-the-counter (OTC) desks for NFT transactions. While NFTs are not necessarily banned, it is important to note that all forms of speculative trading associated with digitally collectable derived tokens are still banned. Here’s an excerpt from a report translated by Google:
“With the background of unclear digital collection compliance, many platforms are actively cracking down on violations to prevent further fermentation of related behavior.”
Due to the increased number of illegal transactions and bot purchases associated with NFT platforms, some tech giants have taken precautions. During the total crypto ban announced in September 2021, companies found to support crypto transactions or foreign crypto companies were held liable. Therefore, recent actions by these companies and changes in user contract policies appear to have been made to avoid government crackdowns.
Cryptocurrencies are strictly banned in mainland China, but the Beijing government has not indicated its intention to ban NFTs.This is Tencent or Alibaba filed for several new NFT patents The past year. However, the growing popularity of digital collectibles in China has also made price speculation and fraud more prone.