Wechat, the Chinese messaging app, has reportedly suspended accounts linked to non-fungible tokens (NFTs). The purpose of the crackdown is to stop the use of affected accounts in promoting NFTs.
The Growing Crackdown on Digital Assets
Chinese messaging app WeChat recently admitted to suspending some accounts believed to be tied to non-fungible tokens (NFTs). The suspension of accounts, according to a BBC report, is intended to prevent these blacklisted accounts from engaging in NFT market promotional activities that help drive up prices.
Wechat’s targeting of accounts promoting NFTs seems to suggest that China, which currently has no specific regulations against NFTs, is expanding its crackdown on digital assets that began in 2021.
As explained in several reports published by Bitcoin.com News, Chinese authorities have been cracking down on bitcoin miners and cryptocurrency exchanges since mid-2021. The crackdown is believed to have forced some crypto miners and platforms out of mainland China.
“Rectified” public accounts
While it’s unclear whether the crackdown has succeeded in completely preventing Chinese citizens from trading or mining crypto, a BBC report suggests that Chinese authorities are now keen to add NFTs to the list of prohibited activities. The same report also elaborated on the reason, citing an update from the Wechat team which stated:
[Wechat] recently normalized and rectified public accounts and small programs for speculation and secondary sale of digital collections.
Wechat also clarified that the actions taken against the now “rectified” accounts were taken in accordance with applicable national regulations.
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