China is very strict about cryptocurrencies, in fact, they remain banned in the country and platforms such as WeChat are not allowed to turn a blind eye to accounts promoting them in any way. This may also be extending, in its littlest way, to Non-fungible tokens (NFTs) which are seen as a variant or spin-off of cryptocurrencies.
WeChat, one of the biggest social media platforms in China has suspended some accounts that are associated with NFTs. The platform has also made the rules surrounding how NFT accounts on its platform should operate very clear.
For those that may still not know, NFTs are collectable digital assets such as a piece of artwork, music, etc., that holds value and are based on a blockchain platform, mostly Ethereum.
Because of China’s tough stance on cryptocurrencies, Chinese NFT enthusiasts cannot use cryptocurrencies to acquire NFTs and have to rely on the Chinese currency which is not based on a blockchain and are subject to regulators’ decisions and approval.
Although the country has declared itself a foe of cryptocurrencies, there is no regulation on how NFTs should work or operate in the country. This goes to say that interested parties can acquire NFTs from a marketplace even though there are huge restrictions on secondary trading. Due to the speculative nature of NFTs, companies indulging in NFT have to be very careful so as not to be affected should a regulation come up on how NFTs should be operated in the country.
In order to prevent speculation in digital currency transactions, Tencent – the company behind WeChat says it has “rectified” public accounts on the platform. While the company did not confirm the suspension of NFT-associated accounts, there have been accounts that seem to have been suspended. On Wednesday, WeChat responded to a Weibo post by local media that said that some NFT-accounts on the platform had been suspended. WeChat also gave an insight into how NFT accounts on its platform are expected to operate. The company said that while official accounts verified by Tencent can display digital collectables, they are not allowed to offer secondary sales to other users on the platform. It added that to offer secondary sales, they have to have acquired a certificate that’d proved that they have been registered and approved to operate by the country’s cyberspace regulator.