The Chinese social media network Weibo has just announced its new NFT marketplace, Topholder. In addition, Weibo has rolled out a new feature that allows users to create and sell NFTs based on their messages.
According to Weibo, every user is subject to internal KYC checks. The company also insisted that it will punish any user that plagiarises content. Additionally, Weibo has also prohibited asset flipping by its users. Therefore, it only allows unrestricted transfers after a waiting period of 180 days.
Weibo’s marketplace x China’s regulations
In China, the NFT market is booming. The country has allowed controlled versions of blockchain technology, which includes the digital yuan. Crypto-savvy Chinese companies are therefore using NFTs to expand their brand and increase their influence.
Tech giants such as JD, Tencent, Alibaba and now Weibo also have their own NFT marketplaces. However, users cannot trade or resell their purchases. In addition, tech giants prefer the term “digital collectible” to “NFT.” This is because they want to stay on the Chinese regulators’ good side and avoid any association with the global crypto market.
China’s increase in NFT popularity led to unprecedented levels of NFT-related financial crimes. As a result, China’s Supreme People’s Procuratorate recently issued a warning stating that financial crimes will be severely punished.
Therefore, Chinese conglomerates had to commit to minimising speculation by including 180-day transfer restrictions or prohibiting secondary transfers. That being said, NFTs and the metaverse are not illegal in China. In fact, China’s very own state-owned media company, Mango TV, recently launched an NFT platform.