Chinese Social Giant WeChat Removes NFTs Over Regulatory Issues

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China remains one of the jurisdictions that has recently taken strict measures and cryptocurrencies and NFTs. Chinese authorities have leased a high level of restrictions and crackdown on crypto mining in 2021.

The major attack was pushed on Bitcoin mining due to the high electricity consumption associated with the process. The country was also concerned about the increased environmental pollution associated with cryptocurrency mining.

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The attack by the Chinese government has led to the closure of several crypto mining companies in the country. During the attack, the price of crypto tokens, especially BTC, plummeted. The impact of the Chinese crackdown on last year’s crypto price performance will remain a historic impact.

Similarly, there have been recent fears of a potential crackdown by the Chinese government against some leading internet giants and social media sites. They are WeChat and WhaleTalk.

The companies are already updating their policies to restrict platforms dealing with non-fungible tokens (NFT). They also cited the lack of clarity about the regulations as one of the reasons.

WeChat opts for policy updates by removing NFTs

For WeChat, the social media and internet giant has removed some accounts from its digital collection platform. The reason was tied to their violations of the rules of operations.

A report from a local newspaper mentioned that Xihu No.1, a digital collection platform that is part of the hyped NFT projects within the NFT market, was one of the platforms that WeChat took down. Dongyiyandian also announced the ban on its official app.

Similarly, WhaleTalk, for its part, renewed its policy of increasing sanctions for using an over-the-counter ‘OTC’ counter in trading from NFT’s Ant group, a technology giant launched WhaleTalk as a digital collection platform. While there is no ban on NFTs, there is a ban on speculative trading with NFT collectibles.

There is information translated by Google that explains the actions of many platforms based on not having clear compliance with digital collections. These platforms have begun intense crackdowns for compliance violations. Their action is to stop further implications that could develop from such activities.

More tech giants are taking precautions to combat the risk of NFT buying. This is due to the increase in illegal trades and bot trading on most NFT platforms.

As announced on September 2021, the general ban on crypto will include penalties for companies that assist crypto transactions or other foreign crypto companies.

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Therefore, the recent policy changes made by these companies are deliberate actions to avert potential government crackdowns.

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While mainland China has a total ban on cryptocurrencies, the Beijing government has not banned NFTs.

This explained why Alibaba and Tencent filed for a number of new NFT patents in 2021. Despite the progress, as digital collectibles are more popular in China, there has been an increase in both their price speculation and potential frauds.

Featured image from Pixabay, chart from TradingView.com

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