China is very strict with cryptocurrencies, in fact they are still banned in the country and platforms like WeChat cannot turn a blind eye to accounts that promote them in any way. This may also apply to a minimal extent to non-fungible tokens (NFTs), which are considered variants or derivatives of cryptocurrencies. WeChat, one of the largest social media platforms in China, has blocked some NFT-related accounts. The platform also clarified the rules for using NFT accounts on its platform.
For those who don’t already know, NFTs are collectible digital assets like artwork, music, etc. that have value and are based on a blockchain platform, primarily Ethereum. Due to China’s rigid stance on cryptocurrencies, Chinese NFT enthusiasts cannot use cryptocurrencies to purchase NFTs and must rely on Chinese currency, which is not based on blockchain and is subject to regulatory acceptance and approval. Even though the country has declared itself an enemy of cryptocurrencies, there is no regulation in the country on how NFTs should function or work. This means that interested parties can purchase NFTs on the market even if there are huge restrictions on secondary trading. Due to the speculative nature of NFTs, companies involved in NFTs must be very careful not to be affected if regulation comes into play regarding how NFTs should be administered in a country.
