Public Accounts on WeChat Suspended to Crackdown on NFT Content

Several public accounts promoting NFTs have been banned on the popular social media app WeChat in an effort to “combat speculation in virtual currency transactions.” Among these are Art Meta Yuanyishu, Yidianshuzang, Earth Zero, One Meta, Guizang Metaverse, Yuanben Space, Huasheng Meta, Nuofangti, Shenda Shuzang, and iBox.

The app’s team noted that “the WeChat public platform has standardized and corrected public accounts and small programs for speculation and secondary sales of digital collections.” The move falls in line with China’s firm stance against cryptocurrencies as trading of digital coins is still banned in the country, justified by rising electricity use and environmental degradation.

NFT regulation is still largely absent in China and, hence, the minting of these assets is done on blockchains that are supervised by regulators instead of building on usual blockchains like Ethereum. Moreover, individuals who wish to purchase NFTs — or digital collectibles, as they are often referred to in the country — must obtain them from a marketplace using the Chinese yuan instead of crypto with secondary trading being prohibited.

Following the mass suspension of accounts, WeChat developer Tencent clarified that only verified accounts that have submitted a Certificate of Cooperation (COC) with a blockchain enterprise registered and approved by the Cyberspace Administration of China will be allowed to push NFT trading. It added that WeChat mini-programs — light versions of mobile apps that run within the platform — only support NFTs as “gifts within the primary market” and as components of digital exhibitions.

Over the last two weeks, at least a dozen public accounts engaged in publishing and pushing NFT content have been suspended, based on a search conducted by the South China Morning Post. Generally, anxious tech companies in China have been mindful to practice caution when dealing with digital assets to avoid falling on the wrong side of upcoming regulations.

Sources: CNBC, Bitcoinist