According to various media reports, WeChat, a popular Chinese messaging app, has suspended upwards of a dozen accounts linked to non-fungible tokens (NFTs) to prevent speculation in digital assets. The platform stated its actions “rectified” accounts that it found were broadcasting NFT market speculation, thus manipulating market prices across various networks.
WeChat Suspends Accounts
China’s relationship with digital currency has taken quite a turn in recent years. Following the outright banning of all cryptocurrencies nationwide last year. At this time, there is no regulation of NFTs in the country, provided users follow strenuous guidelines. Users can buy these digital collectibles from a marketplace; however, secondary trading remains limited.
Residents of China looking to buy NFTs must purchase their digital assets in the national currency (Yuan). Furthermore, NFTs available to citizens remain off the Ethereum blockchain and stay confined to blockchains regulated by officials.
While regulations around Crypto continue to tighten, WeChat’s latest account suspensions provide a grim look into China’s relationship with Crypto. A Tencent spokesperson refused to confirm if the accounts failed to fall within set guidelines. However, WeChat’s official account on “Weibo” responded on Wednesday to a post by local media that reported the accounts were banned.
In addition, the statement clarified the rules around NFT accounts on its platform. For example, official accounts verified by Tencent can display digital collectibles but cannot suggest secondary sales. Moreover, they must supply a certificate to show that China’s cyberspace regulator approves them.
What Is Wechat?
As China’s most popular messaging app WeChat sees over a billion monthly users across the globe. While WeChat’s customer base lies primarily in china, the app supports video, voice, and text chat no matter what country you reside in. However, a surplus of steps is required in order to activate your free account, from QR codes to multiple verifications to enter the platform. As WeChat clamps down on NFTs and Crypto guidelines, their recent decisions might negatively impact company performance.