The most popular social media platform in China, WeChat, will ban all accounts that offer crypto and NFT services on the platform. This also includes secondary NFT trading.
Between May and September last year, the Chinese government started to enforce a phased ban on the crypto sector. This followed a joint statement issued by the China Internet Finance Association, the China Banking Association, and the Securities Association of China. These institutions then warned the users about the “hidden risks” of crypto investment.
WeChat has a traffic of over 1.1 billion daily users in China. The social media platform has, reportingly, been restricting NFT platforms since March. This is happening because of the concerns about a possible government crackdown.
However, a regulatory grey area concerning NFTs still exists in China. NFTs can be purchased with fiat currency. But, trading platforms and companies are avoiding secondary trading, due to fears of possible compliance issues related to the financialization of the tech.
Despite this, there are now over 500 digital collectible platforms in China. This is a five-time increase since February this year.