On Thursday, Weibo (NASDAQ: WB), a Chinese social media network, launched TopHolder, its NFT marketplace. Twitter’s (NYSE: TWTR) equivalent is introducing a new feature that allows users to create and trade NFTs based on their original messages.
Users who want to use the new tool will be subjected to internal KYC checks, and if they are caught and convicted of plagiarism, they will face consequences, according to the social media giant. However, no decision has been taken on how defaulters would be penalized.
Another limitation enforced by TopHolder is the prohibition on asset flipping by users. Instead, it encourages unrestricted transfers after a 180-day waiting period.
Because of state-backed media warnings against the NFT craze, Chinese NFT marketplaces have lately resorted to self-regulation on their platforms.
Following an increase in financial crimes disguised as metaverse, NFT, and cryptocurrency activities, China’s Supreme People’s Procuratorate has issued a warning that financial crimes such as unlawful fundraising and money laundering will be punished severely.
Consequently, Chinese internet giants committed to minimizing speculation on their NFT markets, with AntChain, in particular, instituting a 180-day transfer restriction on its platform and Tencent outright prohibiting secondary transfers.
Following criticism from a number of Chinese official media sites, Tencent has altered the name of their NFT features to “digital collectibles.
Despite public warnings against NFT speculation, NFTs and the metaverse are not illegal in China, unlike cryptocurrencies, which have faced intense scrutiny and limitations.