Chinese messenger WeChat bans NFT-related accounts

Tencent Holdings Ltd., which owns WeChat, has announced that all accounts related with crypto and non-fungible tokens (NFT) will be banned.

The representatives of the company noted that the owners of such accounts will be asked to edit it if the account provides services for trading crypto or NFT. Accounts involved in crypto or NFT trading may be banned for illegal business.

It is reported that only those users who have repeatedly violated the rules will be banned permanently. Accounts of users who have not previously been involved in crypto and NFT promotion will be banned temporarily.

Lately, the number of Chinese platforms for NFT trading has increased fivefold. The Chinese authorities intend to tighten regulation of this industry. Tencent has already filed a patent to host virtual concerts in Metaverse’s virtual world and also launched its own platform for NFT trading.

The Chinese Government considers that strict regulations will help to avoid complicated situations related to roaring demand for NFTs.

The Chinese authorities are negative towards cryptocurrencies and art tokens. The government has already voiced apprehensions that metaverses and NFTs may turn out to be fraudulent schemes.

The People’s Bank of China advises citizens to avoid operations with cryptocurrencies. Last year, the country imposed a ban on mining. For this reason, mining companies were forced to move their plants to other countries. A lot of miners have relocated to the southern part of Kazakhstan, but the national grid cannot provide them with the necessary amount of electricity.

A new study showed that today’s investors pay closer attention to the NFT market. The analysts expect the market size to grow 35% by 2027.