China’s Social Media Platforms Take Down NFT Platforms Fearing Government Crackdown
China’s social media and networking sites have begun to control the activities of NFT sites. They fear that if the Chinese government restricts all forms of crypto-related activities and allows NFT markets to operate, the country will lose operational permits. NFTs or non-fungal tokens are blockchain-based digital collections, most of which are sold in online markets in exchange for cryptocurrencies. China has imposed a number of restrictions on the crypto industry over the past six months, making its actions legally punishable by law.
Although there have been no official announcements warning of restrictions on NFT platforms, the names of several NFT platforms in China have been mentioned. Local media reports.
WeChat, a parallel to China’s WhatsApp, has removed popular NFT operating systems from its search. Expelled sites include Xihu No.1 and Dongyiyuandian.
On March 16, Xihu No.1 Reported We approached Tencent, the parent company of WeChat, to find out if the digital collection of Xihu No.1 currently belongs to the unopened part of the WeChat applet.
Chinese social media company WeChat is said to have deleted several digital collection platform accounts for violating the rules. The digital collection platform Xihu No.1 is one of the most exaggerated NFT projects on the market, one of the eliminated sites.
– Defiescrow (efDefiescrowDefix) March 21, 2022
User policies have been updated through Ant Group’s digital collection site ‘WhaleTalk’, which makes anti-FT transactions a punishable offense.
NFTs play an important role in stimulating the movement of crypto assets. Sales of NFTs reached about $ 25 billion (approximately Rs. 1,84,700 crore) in 2021 as speculative crypto assets became popular, according to data from market tracker DappRadar.
However, despite its legal status in countries such as El Salvador and Dubai, China remains steadfast in its conservative approach to the crypto sector.
After blaming crypto trade and mining in September 2021, China has continued to control various sectors of the country’s decentralized blockchain networks.
In February, the country banned crypto-based fundraising.
China has never given a list of reasons behind its poor attitude towards the crypto industry.
The country is sniffing to shut down illegal crypto mining centers and hold accountable those who break the law.
Areas that see high power outages are connected to identify crypto mining farms that absorb electricity.