Chinese instant messaging app WeChat, owned by tech giant Tencent, has removed several profiles related to non-fungible tokens, or NFT files. The stated purpose of this suspension is prevent speculation with these digital files. According to the company, the suppressed accounts were engaged in speculating with NFTs with the intention of forcing their prices up.
WeChat has removed several profiles allegedly dedicated to NFT file speculation
In China it does not exist at the moment no regulations prohibiting or limiting trading in these files. Under current legislation, it is possible to buy and sell NFTs in the same way as any other product, and without the need to request any special permission from the authorities. The only condition imposed by the authorities is that all transactions must be closed in yuan, the official Chinese currency.
Despite this, WeChat relies to legitimize its decision on the “national regulations aimed at prevent speculation in the market of virtual transactions”. The truth is that, despite the fact that there is no clear regulation in this regard, technology companies based in China have been suffering intense scrutiny from the authorities for months.
Over the past year, the Chinese regime has taken action and dictated sanctions against numerous companies in the technology sector. Those affected include e-commerce firms, online financial service providers, social media platforms, transportation apps or video game companies.
However, the most forceful measures have been against the mining and trading of cryptocurrencies. Both activities have been banned in China. The Asian country has passed to be the main world power in the production of these digital assets to eradicate any operation related to the sector.
Last September, the People’s Bank of China declared all cryptocurrencies and any type of transaction with them illegal. The institution maintains that these financial activities are a “serious risk to the security of citizens’ assets.”