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WeChat Suspends NFT Accounts

Numerous accounts linked to non-fungible coins have been blocked by China’s top messaging apps (NFTs). Even while NFTs aren’t completely banned, WeChat does not allow digital collectibles to be sold on the secondary market since they are speculative items.

The Tencent-owned messaging app has 1.2 billion users, making it the most popular in China and one of the most popular in the world.

In contrast to this, a local financial news site has disclosed that WeChat is not a huge admirer of NFTs, which have risen to $41 billion last year and almost equaled the fine art industry in terms of sales.

NFT is growing around the world

With some NFTs fetching over a million dollars, they’ve become an increasingly popular kind of digital token, much like artwork. In most cases, they are built on top of a blockchain platform like Ethereum and accept cryptocurrency payments in exchange for the tokens.

China’s take on NFTs

In contrast, China has adopted a hardline position on digital currencies, prohibiting them from being traded there. NFTs are not purchased in China using cryptocurrency.

The Chinese yuan is the preferred method of payment. Unlike Ethereum, they don’t use a blockchain. Instead, they are based on other blockchains that are under the control of the appropriate authorities, such as the SEC.

NFTs, on the other hand, are no longer recognized in the country and secondary trade of these virtual items is severely prohibited. Companies are adopting a cautious approach to NFTs because of the risk of being on the wrong side of any new regulations.

Tencent has “rectified” public accounts on WeChat to avoid speculation in digital currency transactions, according to the company.