Chinese internet giants eliminate NFT outlets fearing a government crackdown

March 21, 2022

After denouncing the digital collectible concept, Kanye West files trademarks describing NFT technology.

WeChat removed several accounts for digital collectible platforms for violating the policy of illegal trade, while Ant Group and Tencent-owned NFT platforms updated their user agreements. China’s dominating social media outlets and internet giants have revised their agreement to prohibit or eliminate nonfungible token (NFT) outlets, illustrating a scarcity of regulatory transparency and teasing about a government crackdown. Chinese social media giant WeChat eliminated various digital collectible outlet accounts for infringements of the rules.

Digital collection outlet Xihu Number 1 is one of the hyped NFT programs which was among the removed outlets. Another platform named Dongyiyuandian disclosed that its official application has been prohibited. WhaleTalk is a digital collectible forum established by tech giant Ant organization that has updated its strategy to boost the penalty for using an over-the-counter or OTC desk for trading NFTs. It is significant to remark that even though NFTs are not prohibited, any kind of unpredictable trading related to the digital collectible originated tokens is still forbidden.

A report said that under the atmosphere that the obedience of digital collections is hazy, numerous outlets have started to crackdown on infringements to curb additional fermentation of similar aspects. The increase in the number of illicit transactions and bot purchases related to the NFT programs has urged various tech giants to take precautionary steps. During the blanket prohibition on crypto announced, any companies found supporting crypto transactions or foreign crypto companies were held responsible. Therefore, these companies’ new efforts and differences in user agreement agreements seem to be done to prevent administration crackdown. While virtual currencies are exactly prohibited in mainland China. The Beijing government had exhibited no motive of prohibiting NFTs. Nonetheless, the soaring popularity of digital collectibles in China has also made it inclined to cost beliefs and forgeries.


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