China suspends NFT trading on WeChat

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WeChat is the most popular messaging app in China. Users have been enjoying sharing moments to paying for things but recently NFTs have been the center of focus. This has attracted the regulators in Chinese gov.

WeChat is China’s biggest and most popular messaging app with over 1.2 billion monthly active users. This app can do more than just send messages to friends and families, the range of services includes but not limited to video and voice calling, social posting, news and even payments (similar to ApplePay). The expansive collection of services have even included NFTs.

Since last year, China has announced banning the trading of digital currencies in the country while they are creating their own regulated version. This tough stance has finally affected trading of NFTs (non-fungible tokens). Tencent, the parent company of WeChat has suspended accounts since the update on this ruling, where users are no longer allowed to sell their digital collections in secondary sales.

Traders were using NFT as an alternative way to diversify their money outside of China. 

The popularity boomed last year with several millions of dollars exchanging hands for digital art. People were buying NFT on blockchain platforms, mainly with Ethereum. While in China, users were buying with Chinese Yuan instead of cryptocurrencies. The platforms are all regulated by the government.

The regulation of NFTs is still in a greyzone. Trading in the secondary market  is heavily restricted but users can buy digital collectibles. 

Big tech companies in the countries have been closely monitored and services have changed a bit since last year, as the government tightens its grip on control. Tencent has updated its rules to comply with the regulations. 

Users are still able to display their digital collectibles on the platform but cannot be traded in secondary sales. Recently, Weibo ( the Chinese version of Twitter) has suspended or banned accounts that violate the new terms of services.