Fearing a government crackdown, several Chinese social media companies have started removing or restricting NFTs on their platforms. As the Chinese government clamps down on crypto-related services, companies fear losing their permits to operate in the country. China began the crackdown on crypto mining last year. In recent months, the country imposed more stringent restrictions on the crypto industry.
“Under the background that the compliance of digital collections is not clear, many platforms have begun to actively crack down on violations to prevent further fermentation of related behaviors,” Cointelegraph quoted a local media.
Chinese social media giant, WeChat is one among the many platforms that have updated its policy to restrict NFTs. Reportedly, the company has removed several digital collectibles platforms’ accounts for violating rules. One such account is of Xihu No.1, an NFT project in the country. According to reports, Xihu No.1 had reached out to WeChat’s parent company, Tencent. It then learnt that the account was moved to an unopened area of the WeChat app.
Similarly, WeChat banned the mini-programs of digital collectibles Dongyiyuandian and TheOne.art, reported Yahoo Finance. The super app also banned West Lake No 1, a digital collectible mini-program from the silk product manufacturer, Wensli. WeChat banned the program as it was among the mini-program service categories that were not yet open.
Meanwhile, Alibaba’s Ant Group-owned NFT platform Jingtan has also updated its policy. Apparently, the company has made over-the-counter NFT transactions a punishable offence. It stated it would “alert the police and hand over [details] to judicial authorities” if users made illegal transactions outside the platform.