Subsidiary of one of the largest Chinese tech giants and mobile multi-app WeChat is actively removing accounts that promote unregistered digital assets.
With China putting up a blanket ban on all cryptocurrency operations, locals were forced to move towards other venues of decentralized finance like NFTs. However, that might be coming to an end as the most popular Chinese app WeChat will require creators to register their collections with the Cyberspace Administration of China (CAC).
Based on a local news report, WeChat has started a full-on operation to remove NFT advertisers that do not comply with the local regulatory framework. The CAC requires digital artists to provide a "qualification certificate" that requires creators to register with a blockchain company that is regulated by the administration.
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Creators, advertising their digital assets on WeChat, were most likely avoiding the registration of their NFT business with the CAC as it restricts collectors from reselling their digital assets on secondary markets.
While the Chinese cryptocurrency market has completely shifted towards fully regulated and centralized domains, NFTs and metaverse initiatives have also been on the government’s radar as they pose speculative investment risks.
Back in February, the General Office of China posted a warning against metaverse scams that were disguised as popular blockchain-focused firms.
Likewise, a week later after the notice of metaverse scams, the Supreme Court of China announced the proposal of a policy that limits cryptocurrency and NFT donations to illegal fundraisers.