China’s popular messaging app WeChat has suspended some accounts linked to non-fungible tokens (NFTs) to prevent speculation on digital assets.
The platform states that it has “corrected” accounts, which it believes encourage NFT market speculation, which can help drive prices higher.
There are no regulations against NFTs in China, although cryptocurrency trading was banned last year.
NFTs can be bought and sold in China like any other property.
Because of this, they have been touted as the digital answer to collectibles. However, they do not have their own tangible form, and experts warn of risks in the market.
On Thursday, WeChat responded to local media reports that the accounts had been suspended.
The platform said it “recently standardized and rectified public accounts and small schemes for speculation and secondary sales of digital collections.”
This was “done in accordance with the relevant national regulations to prevent the risk of speculation in virtual currency transactions”.
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Chinese tech giant Tencent, which owns WeChat, declined to comment further when approached by the BBC.
The move comes as China’s tech industry comes under intense scrutiny from the authorities.
The sector has seen a variety of official crackdowns since last year, including crackdowns on e-commerce companies, online financial services, social media platforms, gaming companies, cloud computing providers, ride-hailing apps, and cryptocurrency miners and exchanges.
Even after all the measures, trading NFTs in China is still not illegal. However, the digital assets are based on Beijing-regulated technology.
The rules require buyers to buy NFTs in the local currency, the yuan, and not in cryptocurrencies, which are banned.
The “unique assets” were sold for thousands – and even millions – of dollars.
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