Following weeks of speculations, popular social media network WeChat has reportedly started banning NFT accounts and those associated with advertising crypto trading. WeChat, an app with over a billion users, finally moved to block NFT accounts based on Chinese regulations.
Not too long ago, the app rectified some accounts and programs that create ads to sell virtual currencies. Based on findings, WeChat discovered some NFT digital trading that wasn’t following the Chinese govt. regulations. Over ten NFT platforms have been affected till now.
NFT Accounts Must Be Approved By Chinese Authorities
According to authorities, the decision to block those NFT accounts stemmed from the objective of protecting users. The accounts affected must register and be granted approval by the Chinese Cyberspace Administration.
Each banned account must produce a certificate of cooperation with a blockchain firm to certify registration. However, only accounts that weren’t banned for alleged fraud could re-register.
Based on findings, accounts, such as Huasheng Meta, iBox, One Meta, are under the ban. The mini-programs on WeChat now display virtual collections following the crackdown.
China: A Strong Anti-crypto t
It’s no news that China has been an advocate of crypto regulations for a long time. The Southeast Asian country has been against virtual currencies and NFTs since their emergence and has enacted some regulatory laws against them.
Last June, the country ended all Proof-of-Work-related activities, sending thousands of crypto miners to other friendlier countries that supported crypto mining. Countries like Russia, Kazakhstan, Iran, the U.S., and the Netherlands became a haven for these miners.
The Chinese government cited excessive electricity consumption and environmental pollution as two significant reasons for the ban on mining. Since the clampdown, tech companies remaining in the country have been gripped with fear of dealing with virtual currencies.
However, the clampdown on miners was only the tip of the iceberg. Three months later, China placed a total ban on all crypto-related activities, including the purchase and trading of digital assets. This move finally put to death crypto activities in the country, forcing several reputable exchanges like Huobi out of the jurisdiction.
According to China, the crypto bans stemmed from the need to protect the environment and minimize electricity consumption. However, sources within the government said that the intentional ban on crypto was to promote the use of e-CN¥, Chinese CBDC.
Digital Yuan was launched in 2018 after four years of planning. It was fully used during the just-concluded Winter Olympics, where over 300,000 digital transactions were recorded in a single day.