WeChat, Ant Group, and Tencent fear government reprisals

​Chinese companies have imposed restrictions on the operation of NFT platforms

21.03.2022 - 15:50

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What’s new? WeChat, a Chinese internet giant, has deleted several accounts of digital collections platforms for violating its trade policy. Changes in user agreements have also been adopted by platforms owned by Ant Group and Tencent, CoinTelegraph reports.

News on the CoinTelegraph website

What is the reason for the restrictions? China’s leading social networks and internet companies cite a lack of clarity in the regulation of NFTs and fear of government sanctions. WeChat has already removed the account of the popular NFT platform Xihu No.1. Another platform called Dongyiyuandian has announced the introduction of an official ban on the operation of its application. WhaleTalk, a digital collectible platform from the Ant group, has also updated the policy, tightening the penalty for OTC trading of NFTs.

In September 2021, the People’s Bank of China called all financial activity involving bitcoin and other virtual currencies illegal. It has promised to take strict measures to crack down on its trade. The services provided by cryptocurrency exchanges to residents of China have also been outlawed.

Although NFTs are not officially banned in China, any form of speculative trading in these tokens can lead to sanctions from the authorities.

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