WeChat To Tighten Rules On NFTs, Is A Crackdown Coming?
China’s largest messaging application, WeChat has come forward to introduce rules to strengthen supervision over non-fungible tokes (NFT). As per reports, the platform has prohibited the NFT related public accounts in order to comply with new rules.
WeChat issues new rules
WeChat, which has more than 1.1 billion daily users, issued new rules regarding the issuance of digital assets. The updated “Code of Conduct” states that as per section 3.24, any account involved in the issuance, trading, and financing of virtual currency will have to face the consequences. Identified accounts will be restricted from certain functions which can lead to a permanent ban.
The updated rules mention that profiles providing secondary transactions of NFTs shall also be dealt with in accordance with it. According to reports, WeChat has blocked the official account of “NFTea Digital Tea Ticket” for not following the laid regulations. The profile was found doing the secondary transactions of digital collections which were raised by the users.
Earlier, WeChat blocked a large number of accounts dealing in the NFTs. This move came in accordance with increased scrutiny from the Chinese government. However, the application mentioned that this resolution was taken to prevent risk digital assets trading speculation. WeChat also rolled out the notifications to some NFT platforms to register qualification certificates for further engagement on the network.
China a big-time critic of NFTs
The banned accounts on the platform are required to provide a certificate of cooperation with a blockchain company. The blockchain organization should be registered and approved by the Cyberspace Administration of China.
The Chinese government has been a big opposer to the Virtual Digital Assets in the country. It has already banned cryptocurrencies and their mining. In April Chinese financial and security institutions launched an initiative over preventing risks related to Digital assets. It mentioned that the NFT market can heat up in the future, and there are some hidden risks like money laundering and speculations related to it.
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