WeChat bans over ten accounts linked to NFT trading

Reports from China state that WeChat, a leading social media company, has blocked accounts associated with trading non-fungible tokens (NFTs). The banned accounts trading NFTs on WeChat are linked with small and medium-sized NFT exchanges.

The NFT market has grown substantially over the past year. However, in China, the NFT market is not as large due to the country’s tough policies regarding cryptocurrencies. Last year, China announced a ban on cryptocurrency mining and trading, resulting in the closure of many crypto-related businesses.

WeChat reportedly bans NFT accounts

WeChat is the largest social media platform in China. It boasts of around 1.2 billion users, and it is believed to be a monopoly in the sector. A report from the Global Times has stated that WeChat has banned more than ten accounts associated with NFT trading. Global Times is a Chinese state online media linked to the People’s Daily.

On Wednesday, WeChat announced that the move to ban these accounts was to prevent the use of NFTs for speculation purposes. The social media company also said that the move would ensure users do not experience the risks of cryptocurrency trading. WeChat has also said that second-hand NFTs will not be permitted to trade on the platform.

After cryptocurrencies were banned in China last year, the NFT space was left in limbo. While the NFT space is not entirely banned in the country, tough restrictions have been imposed. It is illegal for users to buy NFTs for speculative purposes.

WeChat has said that public accounts that allow trading of primary NFTs will have to provide proof of cooperation with blockchain firms under the Cyberspace Administration of China. Mini programs that will be launched on the platform will only be used to support NFTs that have been issued as gifts in the primary market. It will also support NFTs that are part of digital exhibitions.

“If any bypass or counter moves are detected, the accounts may be banned or removed based on the extent of the violation,” WeChat added. This statement echoes the stance that has been taken by the Chinese government to ban the trading of digital assets within its borders.

As aforementioned, NFTs are in a sort of gray area in China. In China, NFTs are popularly known as digital collectibles. As they are not entirely banned, digital collectibles have become increasingly popular among young people that want to gain exposure to the digital asset sector. As it is the only digital asset legally accessible, speculative behavior has sprouted, but this is strictly prohibited.

China supports the NFT industry but prohibits crypto

Cryptocurrencies are banned in China, and people cannot buy digital collectibles using cryptocurrencies, and therefore, they rely on the use of fiat money. Earlier this year, it was reported that China wanted to launch its own NFT marketplace that will harbor digital collectibles that have been created using Distributed Digital Certificate (DDC) standard. The standard would eliminate the need for people to use cryptocurrencies when dealing with NFTs.

The DDC standard would be developed using ten blockchains that comprise China’s Blockchain Service Network (BSN). One of the ten chains on the BSN is Fisco Bcos. This chain was launched by WeBank Clients, and it only permits the settlement of NFT transactions done with the Chinese yuan.

IN December, Xinhua, a news agency for the Chinese state, announced the issuance of the first-ever digital collectibles. These digital collectibles would comprise 110,001 copies of unique photographs gathered from 11 collections.