Home News Chinese internet giants remove NFT platforms fearing gov’t crackdown

Chinese internet giants remove NFT platforms fearing gov’t crackdown

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There is a lack of regulatory clarity and fears of government retaliation. Therefore, Chinese main social media platforms and internet behemoths have revised their policies. In order to restrict or eliminate nonfungible token (NFT) platforms.

WeChat, the Chinese social media giant, said to have taken down numerous digital collectible platform accounts due to regulation infractions. Among the platforms eliminated was Xihu No.1. A digital collection platform that was one of the most touted NFT initiatives on the market. According to a local newspaper, another site, Dongyiyuandian, has had its official app banned.

WhaleTalk, a digital collectibles platform founded by internet behemoth Ant Group, recently changed its rules. In order to enhance the penalty for dealing with NFTs through an over-the-counter (OTC) desk. It’s worth noting that, while NFTs aren’t strictly outlawed, any speculative trading involving digital collectable derived tokens is. The following is an excerpt from the report, which Google-translated:

“Given the haziness around digital collection compliance, many platforms have begun to actively crackdown on transgressions in order to prevent the spread of similar practises.”

A desire to avoid government retaliation

The growth in unlawful transactions and bot purchases linked to NFT platforms has caused some internet firms to take preventive measures. Any firms discovered assisting crypto transactions or overseas crypto corporations held responsible under the blanket ban on crypto issued in September 2021. As a result, these companies’ recent actions and modifications to user agreement regulations appear to be motivated by a desire to avoid government retaliation.

While cryptocurrencies are illegal in mainland China, the Beijing government has indicated that it has no plans to outlaw NFTs. This was one of the main reasons why companies like Tencent and Alibaba filed multiple new NFT patents last year. However, as digital collectibles have grown in popularity in China, they have become more susceptible to price speculation and fraud.

Chinese state media warns of NFT’s “huge bubble”

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