HomeNEWSWeChat bans illegal NFTs outlet

WeChat bans illegal NFTs outlet

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According to information from the WeChat team, the platform has shut out some NFTs accounts on its network. The development comes in line with a directive from the Chinese government that compulsories registration with the government before operating. According to this directive, NFTs trading platforms must register with the China Cyberspace Administration as a “Compliant company”.

Reason for the Ban by WeChat

One of the main reasons for banning these accounts is due to register with the government. However, some accounts fell victim due to reports relating to fraudulent activities. Affected accounts are Art Meta Yuanyishu, Zero Earth, iBox, One Meta Yuanben Space, Shenda Shuzang among others.

Additionally, these Compliant companies must not engage in the retail of NFTs between holders. The process is a two-way process, which involves the registered companies to sell NFTs. Customers are not authorized to resell them to fellow holders.

Furthermore, the affected accounts belong to non-compliant companies that are yet to register with the Government. More than Twelve accounts were affected as WeChat revealed that its platform won’t accommodate companies that are yet to register.

The ban will prevent NFTs outlets from using WeChat as an avenue to reach out to their customers. This implies that WeChat won’t host the official page for unregistered outlets on its system.

Nevertheless, NFTs and other digital assets are increasing in fame in China. It has become a subject of speculation by investors who engage in a hand-to-hand transaction of NFTs. The Chinese government has overtly kicked against such acts. The foregoing resulted in the government insisting that companies must register with the China Cyberspace Administration.

The Growth of Digital Assets in China

More so, the development of NFTs in China has been remarkable. According to reports, Leading Tech companies who engage in the NFTs market are willing to protect it from external influence.

Also, Alibaba and Tencent are pushing heavily for the development of the market. The companies are investing heavily in NFTs, Also, the Chinese government is doing everything possible to ensure the growth. Despite the support, the Chinese government frowns at using NFTs to aid cryptocurrency exchange.

The ban on hand-to-hand sales of NFTs in China is to preserve the value of the market. There are increasing calls that the government should only make the ban brief. Lastly, there are hopes that the Government might relax its approach and allow certain reforms.

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