- Chinese Social Media Platform WeChat has recently opted to upgrade its policies to restrict or remove NFT platforms.
- Scepticism is hovering around the NFT space concerning Regulatory clarity, and there is a fear related to government clampdown.
- Increased tech giants are also quite precautionary to combat the risk associated with the buying of NFTs.
China is a vehement critic of cryptocurrencies that banned crypto-assets and mining last year due to concerns regarding the high energy consumption and increased environmental pollution.
Like the Chinese crackdown on the crypto industry, there is a wave of fear among the leading internet and social media giants like WeChat and Whale Talk of a potential crackdown on NFTs by the government.
As the skepticism related to regulatory clarity on the NFT space hovers, these platforms got forced to think on the matter.
Recently the Chinese Social media platforms and internet giants have updated their policy to restrict or remove Non-Fungible Tokens (NFTs) platforms. It was due to skepticism related to regulatory clarity and fearing government clampdown.
The famous Chinese social media application WeChat has removed some accounts from the digital collectable platform, the reason being violation of rules. Xihu No.1 was one of the hyped NFT projects in the market and was among the removed platforms. At the same time, another platform called Dongyiyuandian reported that its official app had been banned.
ALSO READ – Blockchain.com Acquires Altonomy’s OTC Desk
WhaleTalk is a digital collectable platform by Ant group, and it has also upgraded its policy to increase the penalty for using Over the counter (OTC) desk for trading NFTs. Even though the NFT space is not entirely banned, any suspicious trading associated with the digital collectible derived tokens is forbidden.
According to the report, the actions of many platforms are not clear in respect to compliance with digital collectibles. Many platforms have started to actively crackdown on violations to prevent further fermentation of related behaviours.
Companies like Alibaba and Tencent last year filed for some new NFT patents. Due to the increasing trend of NFTs in the country, it is also vulnerable to price speculation and potential fraud.
And though China is firm at its actions on cryptocurrencies, the Beijing government has not banned the Non-Fungible Tokens (NFTs).
The increase in illicit activities and purchases related to the NFT sector has forced various tech giants to take precautionary measures.
It’s ironic that even though the country has banned the asset class entirely, it efficiently utilises related concepts like blockchain technology, and even NFTs are also quite popular there. But it is to look forward if the fear of these entities comes alive and China crackdowns on the NFTs.
The post Chinese Platform WeChat Removes NFT Platforms: Lack of Regulatory Clarity appeared first on The Coin Republic: Cryptocurrency , Bitcoin, Ethereum & Blockchain News.
Source: https://www.thecoinrepublic.com/2022/03/23/chinese-platform-wechat-removes-nft-platforms-lack-of-regulatory-clarity/