Fearing a government crackdown, Chinese internet companies have removed NFT services.
WeChat deactivated many accounts for digital collectable platforms for breaking WeChat’s anti-illegal trade policy, while Ant Group and Tencent-owned NFT platforms revised their user agreements.
Because of a lack of regulatory clarity and a fear of government retaliation, China’s main social media platforms and internet behemoths have altered their policies to restrict or eliminate nonfungible token (NFT) platforms.
WeChat, the Chinese social media giant, is said to have terminated numerous digital collectible platform accounts due to rule infractions. Xihu No.1, a digital collection platform that was one of the market’s most heralded NFT initiatives, was one of the platforms that was eliminated. According to a local news source, another site called Dongyiyuandian has had its official app removed.
WhaleTalk, a digital collectibles platform founded by Ant Group, has changed its rules to enhance the penalty for trading NFTs through an over-the-counter (OTC) desk. It’s worth noting that, while NFTs aren’t technically outlawed, any type of speculative trading involving digital collectable derived tokens is prohibited. The following is an excerpt from the Google-translated report:
“Given the haziness around digital collection compliance, many platforms have begun to actively crack down on noncompliance in order to prevent the spread of similar practises.”
The growth in unlawful transactions and bot purchases linked to NFT platforms has spurred numerous internet behemoths to take preventive measures. Any firms discovered assisting crypto transactions or foreign crypto corporations were held liable under the blanket ban on crypto issued in September 2021. As a result, these companies’ recent actions and revisions in user agreement regulations appear to be motivated by a desire to avoid government retaliation.
While cryptocurrencies are illegal in mainland China, the Beijing government has indicated that it has no plans to outlaw NFTs. This was one of the main reasons why companies like Tencent and Alibaba filed a slew of new NFT patents in the last year. However, as digital collectibles have grown in popularity in China, they have become more vulnerable to price speculation and fraud.
The rise in illegal transactions and bot purchases linked to NFT platforms has prompted many internet behemoths to take precautions. Under the blanket ban on crypto enacted in September 2021, all firms found facilitating crypto transactions or foreign crypto organisations were held responsible. As a result, recent moves and adjustments to user agreement laws by these corporations appear to be motivated by a desire to avoid government punishment.
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