Leading Chinese social media platforms and Internet giants have updated their policies to restrict or remove non-fungible token (NFT) platforms, citing a lack of regulatory clarity and fears of government repression.
The Chinese social media giant WeChat is said to have deleted several accounts for digital aggregation platforms for breaches of the regulations. Xihu Digital Aggregation Platform # 1, one of the most popular NFT projects on the market, was among the external platforms. A local news source said that another platform called Dongyiyuandian reported on the ban on its official app.
WhaleTalk, a digital group platform launched by technology giant Ant Group, has also updated its policy to increase the penalty for using an OTC board for NFT trading. It is important to note that although NFTs are not necessarily prohibited, any form of speculative trading related to collectible digital derivative tokens remains prohibited. An excerpt from the report, translated by Google, reads:
“Given that digital group compliance is unclear, many platforms have begun to crack down on breaches to prevent further fermentation of related behaviors.”
The increase in illegal transactions and fines related to NFT platforms has led many technology giants to take precautions. Under the total ban on cryptocurrencies announced in September 2021, any company was found to facilitate cryptocurrency transactions or foreign crypto firms were held liable. Thus, it appears that these companies’ recent actions and changes in guidelines for user agreements have been taken to avoid retaliation from the authorities.
Related topics: Chinese companies participate in metaverse brand races
While cryptocurrencies are strictly banned in mainland China, the Beijing government has shown no intention of banning NFTs. This was one of the main reasons why companies such as Tencent and Alibaba have filed several new NFT patents in the last year. However, the growing popularity of digital collectibles in China has also made it vulnerable to price speculation and fraud.