Social Media Platforms In China Restrict NFT Platforms Due To Lack Of Regulatory Clarity

Famous social media venues, as well as internet companies from China, have made updates on their policy by restricting or removing the NFT (non-fungible token) venues, referring to the deficiency in regulatory transparency along with the fear that the government would execute a crackdown on doing this.

WeChat, a well-known Chinese social media company has reportedly eliminated support for many platforms that provide digital collectibles-related services, by removing the accounts of the respective venues. Xihu No.1, a digital collection forum that is among the renowned NFT projects across the industry, was also included in the eliminated venues. Dongyiyuandian is another venue that disclosed that the official app thereof has been prohibited.

Another platform for digital collectibles (being launched on the behalf of the prominent Ant group), WhaleTalk, has additionally updated the policy thereof to enhance the fine for utilizing an OTC (over-the-counter) desk in case of NFT trade. It is noteworthy that although no outright prohibition has been placed on NFTs, any kind of speculative trading having a connection with the virtual collectibles-based tokens is even now banned.

The report stated that keeping in view the background that no clarity is present in virtual collections’ compliance, several venues have started to vigorously crackdown over the violations to avoid additional issues of similar kind in the future. The escalation in the number of illegitimate transfers as well as bot purchases linked to the NFT venues has persuaded many tech firms to act upon some precautionary moves.

In 2021’s September, when an outright prohibition was implemented on crypto, any companies found assisting in crypto transfers were taken as accountable for their misconduct. That is why the respective platforms are moving towards taking such stringent steps in terms of consumer-agreement policies as it appears that they intend to escape any crackdown that the authorities might execute against them.

Although an outright prohibition over crypto has been enforced by the Chinese government over the utilization of crypto in the country, the authorities of Beijing had not shown any intention to prohibit non-fungible tokens during the whole of the previous year.

This was considered to be one of the chief causes at the back of Alibaba, Tencent, as well as other such platforms to submit applications for many latest NFT patents throughout the previous year. Nonetheless, the intensifying reputation of virtual collectibles has some fraud and price speculations-related problems.

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