Most of the accounts involved are related to small and medium-sized NFT exchanges. Due to China’s blanket ban on cryptocurrencies, most NFT transactions are done through the yuan.
Bitcoin is done, what about NFTs?
The monopoly super app WeChat, which has more than 1.2 billion users in China, has banned more than a dozen accounts involved in NFT transactions, according to the Global Times, a Chinese official tabloid affiliated with the People’s Daily.
WeChat said on Wednesday the move was aimed at preventing speculation in user accounts and mini-programs, as well as preventing risks associated with cryptocurrency trading. The social media giant also stressed that second-hand NFT transactions are not allowed on the platform.
WeChat added that public accounts supporting Tier 1 NFT transactions should provide proof of cooperation with blockchain companies registered with the Cyberspace Administration of China. Mini Programs on the platform only support digital collectibles as part of “primary market gifts” and digital exhibitions.
WeChat has doubled down on enforcement in line with the tough stance adopted by the Chinese government, saying that “if any circumvention or counterattack is detected, accounts may be banned or deleted depending on the degree of violation.”
Unlike Bitcoin trading and mining, which is explicitly banned in China, NFTs remain a relatively gray area with unclear rules. Known as digital collectibles in China, these assets are becoming increasingly popular among young people.
China builds crypto-agnostic NFT industry
As CryptoPotato reported earlier in January, China is poised to launch its own NFT marketplace using non-fungible tokens based on the Distributed Digital Certificate (DDC) standard instead of dealing with cryptocurrencies.
According to reports, the NFT platform known as the BSN Distributed Digital Certificate (BSN-DDC) will be integrated with ten chains including Fisco Bcos initiated by WeBank. Clients can only settle NFT transactions in RMB.
Back in December, China’s official news agency Xinhua released the first-ever digital collection, with 110,001 unique photos from 11 collections.
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