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Accounts involved are associated with mostly small and medium-sized NFT exchanges. Due to the all-sweeping ban on cryptocurrency in China, most NFTs trading is completed via the Chinese Yuan.
Bitcoin Is Done, How About NFTs?
WeChat, the monopolistic super app that has over 1.2 billion users in China, has banned over ten accounts implicated in NFTs trading, reported by Global Times – the Chinese state tabloid media affiliated with the People’s Daily.
WeChat said on Wednesday the move was to deter speculation by user accounts and mini-programs as well as to prevent risks associated with cryptocurrency trading. The social media giant also emphasized that second-hand NFTs trading is not permitted on the platform.
Public accounts that support primary NFTs trading shall provide proof of cooperation with blockchain firms recorded by the Cyberspace Administration of China, WeChat added. Mini-programs on the platform only support digital collectibles as “gifts within the primary market” and as part of digital exhibitions.
WeChat, doubling down its enforcement in accordance with the hawkish attitude adopted by the Chinese government, stated, “If any bypass or counter moves are detected, the accounts may be banned or removed based on the extent of the violation.”
Unlike bitcoin trading and mining, clearly banned in China, NFTs are still a relatively gray area with unclarified rules. These assets, known as digital collectibles in China, are gaining popularity among young people.
China Built its NFT industry Unrelated to Crypto
As reported previously by CryptoPotato back in January, China was ready to launch its own NFT marketplace with non-fungible tokens based on Distributed Digital Certificate (DDC) standard instead of dealing with cryptocurrencies.
The NFT platform, dubbed BSN-Distributed Digital Certificate (BSN-DDC), would reportedly integrate with ten chains, including Fisco Bcos, initiated by WeBank. Clients can only settle NFT transactions via Chinese Yuan.
Back in December, the Chinese state news agency Xinhua issued the first-ever digital collectibles, a total of 110,001 copies of unique photographs from 11 collections.