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 newspaper, another platform called Dongyiyuandian disclosed that its official app has been prohibited.
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 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.
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