According to many media reports, WeChat, a prominent Chinese messaging service, has terminated several dozen accounts related to non-fungible tokens (NFTs) in an effort to curb speculation in digital assets. According to the business, its efforts “corrected” accounts that were broadcasting NFT market speculation, so impacting market prices across many networks.
China’s relationship with digital money has shifted dramatically in recent years. Following last year’s nationwide restriction of all cryptocurrencies. Currently, the government does not regulate NFTs, as long as users adhere to specific regulations. Although users may acquire these digital objects via a marketplace, the secondary exchange is still prohibited.
Chinese residents wishing to buy NFTs must do it in their own currency (Yuan). Additionally, public NFTs are excluded from the Ethereum blockchain and are confined to blockchains managed by authorities. While China’s cryptocurrency rules continue to tighten, Wechat’s latest account closures provide a grim picture of the country’s bitcoin relationship. A spokeswoman for Tencent refused to comment on whether the accounts broke any regulations. However, on Wednesday, WeChat’s official “Weibo” account responded to a report by local media that the accounts had been disabled. Additionally, the company maintained the limits on its platform’s NFT accounts. Official accounts certified by Tencent, for example, may display digital collectibles but cannot advise on secondary trades. Additionally, they must provide a certificate confirming their approval by China’s cyberspace administration.
What Is Wechat?
WeChat, China’s most popular messaging app, has a monthly user base of over a billion. While WeChat’s user base is mostly Chinese, the software enables video, audio, and text chat to users worldwide. However, several steps are required to activate your free account, ranging from QR codes to numerous verifications. WeChat’s recent decisions on NFTs and Crypto laws could have a severe effect on the firm’s development.