It appears that the Chinese government is not going to ease off on the ban with respect to virtual digital assets.
Tencent’s WeChat which has over 1.2 billion users began to block NFT accounts in large numbers. As per reports, this move has come in accordance with the Chinese government’s regulations. WeChat made its decision to prohibit the accounts in order to prevent the risk of virtual currency trading speculation.
NFT accounts need to be approved by Chineses Govt
The multipurpose app standardized and rectified public accounts and small programs that creates hype in order to sell digital assets for the second time. According to a report, WeChat has said that they are detecting the behavior of NFT digital transactions and not the digital collections. More than ten small and medium sized NFT platforms have been affected till now.
The banned public accounts are now required to provide a certificate of cooperation with a blockchain company that has been registered and approved by the Cyberspace Administration of China. However, there are some accounts that have been banned over fraud suspicions.
As per a report, public accounts including Art Meta Yuanyishu, Yidianshuzang, One Meta, Earth Zero, Guizang Metaverse, Huasheng Meta, Yuanben Space, Shenda Shuzang, iBox, and Nuofangti have been banned. Meanwhile, Head platforms on the app such as Tencent Magic Core have not been affected.
The mini programs on the app are now only supporting the display of virtual collections and first-level gifts.
China, a strong critic of crypto ecosystem
China has been a strong critic of cryptocurrencies and NFTs. Last year it made it to the list of the countries which have banned Virtual Digital Assets and their mining. The government cited high electricity consumption and increased environmental pollution as reasons supporting the ban. Since then tech giants in the country have been riding a wave of fear in dealing with digital assets.
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