Apr 04, 2022 (Yolowire via COMTEX) -- China's popular %WeChat messaging app has suspended some accounts linked to non-fungible tokens ( %NFTs ) to prevent what it calls “speculation in digital assets.”
The platform says it has “rectified” accounts that it found to be promoting NFT market speculation that can drive up prices for the blockchain-based assets.
There are currently no specific regulations related NFTs in China. However, the mining and trading of %Cryptocurrencies was banned by authorities in China last year, forcing many cryptocurrency miners to flee the country of 1.4 billion people.
In a news release, WeChat said it had “recently standardized and rectified public accounts and small programs for speculation and secondary sales of digital collections.” It added that this was done “to prevent the risk of speculation in virtual currency transactions.”
Chinese technology giant %Tencent ($TCTZF) owns WeChat. The move comes as China's technology industry has come under intense scrutiny by authorities over the past two years.
The sector has seen a large amount of official action against it, including crackdowns on ecommerce firms, online finance services, social media platforms, gaming companies, cloud computing providers, ride-hailing apps and cryptocurrency exchanges.
Even after all the measures, the trading of NFTs is not illegal in China. However, the digital assets are built on blockchain technology that is tightly regulated by Beijing. Under the rules, buyers must purchase NFTs in the local Chinese currency, the yuan, rather than cryptocurrencies, which are banned.
NFTs have been touted as digital collectibles. However, they have no tangible form of their own, and some analysts say that they are a risky investment for most people.
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