China’s social media and networking platforms have begun to limit the activities of NFT platforms. They fear that if they allow NFT marketplaces to operate, they may lose operational permission in the country because the Chinese government is blocking all kinds of crypto-related activities. NFT or non-fungible tokens are blockchain-based digital collectibles, most of which are sold through online marketplaces in exchange for cryptocurrencies. China, in the last six months, has imposed a number of restrictions on the crypto sector, making its activities a punishable offense.
Although there is no official notification to warn NFT platforms about the restrictions imposed on them, many NFT platforms that no longer operate in China have been named in local media reports.
WeChat, which is the Chinese equivalent of WhatsApp, has removed popular NFT platforms from its searches. Exiled platforms include Xihu No.1 and Dongyiyuandian.
On March 16, Xihu No.1 only contacted WeChat’s parent company, Tencent, to report that Xihu No.1’s digital collection currently belongs to the unopened area of the WeChat app.
Chinese social media giant WeChat has reportedly removed several digital collectible platform accounts for violating the rules. The digital collection platform Xihu No.1, one of the hyped NFT projects on the market, was among the removal platforms.
– Defiescrow (@DefiescrowDefix) March 21, 2022
User policies have also been refreshed by Ant Group’s digital collection platform ‘WheelTalk’, making over-the-counter NFT transactions a punishable offense.
NFTs play an important role in triggering the movement of crypto resources. Sales of NFT reached about $ 25 billion (approximately Rs. 1,84,700 crore) in 2021 as speculative crypto assets exploded in popularity, according to data from market tracker DappRadar.
Although China has gained legal status in countries such as El Salvador and Dubai, the crypto sector has remained steadfast in its rather conservative approach.
After criminalizing crypto trading and mining in September 2021, China has continued to block various areas of the country’s decentralized blockchain network.
In February, the country banned crypto-based fundraising.
China has not provided a list of reasons behind its annoying approach to the crypto sector.
The country is sniffing to shut down illegal crypto mining centers and hold violators accountable.
Areas where high power outages are observed are being combed to identify crypto mining firms that may be causing power outages.