Wechat, the Chinese messaging app, has reportedly suspended accounts that are linked to non-fungible tokens (NFTs). The objective of the crackdown is to stop the use of the affected accounts in promoting NFTs.
The Widening Crackdown on Digital Assets
The Chinese messaging app Wechat recently acknowledged it had suspended some accounts which are said to be linked to non-fungible tokens (NFTs). The suspension of the accounts, according to a BBC report, is aimed at stopping such blacklisted accounts from engaging in NFT market promotional activities that help to drive up prices.
The targeting of NFT-promoting accounts by Wechat appears to suggest that China, which currently does not have specific regulations against NFTs, is widening its crackdown on digital assets that began in 2021.
As explained by multiple reports published by Bitcoin.com News, Chinese authorities have been clamping down on bitcoin miners and cryptocurrency exchange platforms since mid-2021. The crackdown is believed to have forced some crypto miners and platforms to leave mainland China.
‘Rectified’ Public Accounts
While it is not clear if the crackdown has succeeded in completely stopping Chinese citizens from trading or mining crypto, a BBC report suggests Chinese authorities are now eager to add NFTs to the list of outlawed activities. The same report also expanded on the reason, quoting an update from the Wechat team which said:
[Wechat] has recently standardized and rectified public accounts and small programs for speculation and secondary sales of digital collections.
Wechat also clarified that the action taken against the now “rectified” accounts was done in accordance with relevant national regulations.