WeChat Cleans Up A Dozen NFT Promoted Accounts, Here's Why!

WeChat, has suspended at least a dozen accounts associated with non-fungible tokens (photo: Unsplash doc).

JAKARTA - Chinese messaging app WeChat has suspended at least a dozen accounts associated with non-fungible tokens (NFT). This measure aims to prevent speculation in digital assets including currency transactions.

NFTs are crypto assets that represent digital items such as images or videos. They are usually based on blockchain platforms, especially Ethereum, where people pay for tokens in cryptocurrencies.

WeChat said it standardized and refined accounts promoting NFT market speculation last week, which could help drive prices up.

Customers who try to access the suspended page are shown a message saying each does not have an official license or license to publish, distribute, or engage in related business activities.

Indeed, there are currently no specific regulations against NFTs in China. However, mining and trading of cryptocurrencies was banned by the authorities last year.

Launching The Independent, Monday, April 4, but what WeChat is doing is in accordance with relevant national regulations, to prevent the risk of speculation in virtual currency transactions. The move comes as China's technology industry is under intense scrutiny by the authorities.

The sector has seen a plethora of legal action against it since last year, including crackdowns on e-commerce companies, online financial services, social media platforms, game companies, cloud computing providers, ride-hailing apps, miners and cryptocurrency exchanges.

Even after all the measures, NFT trading is still not illegal in China. However, digital assets are built on technology regulated by Beijing, not on blockchains like Ethereum.

Under the rules, buyers must purchase NFTs in the local currency, the yuan, rather than cryptocurrencies that have been banned.

NFT itself is touted as the digital answer to collections. However, they do not have a tangible form of their own, and experts have warned about risks in the market. However, unique assets like these often sell for thousands, even millions of dollars.