A number of prominent Chinese tech giants have taken proactive measures with regards to the regulation of NFTs, all in anticipation of a tightening of controls from the government regarding the speculative trading of digital assets.
Despite administering a total ban on cryptocurrencies last September, the Chinese government has so far taken a more relaxed view of non-fungible tokens. However, it is still keen to reign in any collections that represent speculative trading, as well as the use of trading bots across the industry.
So, to combat this, Chinese social media giant, Wechat, has removed a number of NFT related accounts from its platform, citing policy violation and illegal trade as the core reason for the decision. Notably, major digital collectable platforms, Xihu No1 and DongYiYuanDian saw their accounts banned.
In addition, Ant Group’s ‘digital collectibles’ arm, Whaletalk, as well as WeChat parent, Tencent, both updated their terms and conditions, resulting in increased penalties for misusing their services and embarking on illegal activities.
All three companies have responded to a lack of regulatory clarity within the NFT sector. Consequently, expecting further controls to arrive in the near future. Companies are now also tightening the rules and regulations surrounding their platforms while the Chinese government mulls over its next move.
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