China remove NFT platform from internet. Yes! you read it right! NFTs are no doubt one of the best assets people are holding, however, governments are taking control over them. China is also working to control the NFT projects. This new decision has forced social media platforms and internet companies to upgrade their policies.
China’s social media is ruled by WeChat. WeChat deleted several accounts which were linked with digital collectable platforms like NFTs. It was later clarified that it was breaking the policy of unlawful trading. Due to this action, Ant Group and Tencent-owned NFT platforms are upgrading their user agreements.
We will be discussing more on China removing NFT platforms from the internet. Along with this, here are the changes that will occur in the market by this move. So, without wasting time, let’s start with “China Remove NFT Platform From Internet”.
China Remove NFT Platform From Internet
Now all Chinese social media platforms and internet companies are upgrading their policies. This new update is mainly to limit or delete NFT platforms. One of the exciting NFT projects Xihu No.1 was removed. Similarly, the official app belonging to the site Dongyiyuandian was also blocked.
The whole talk is another collectible marketplace that also updated the policy of its terms to remain in the market. An excerpt from the Google-translated report read:
“Under the background that the compliance of digital collections is not clear, many platforms have begun to actively crack down on violations to prevent further fermentation of related behaviors.”
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Are NFTs Illegal In China?
Why China remove NFT platform from internet?
Are NFTs illegal in China now?
He Yifan, chief executive of Red Date Technology, a company that provides technical support to BSN, announced the news to the South China Morning Post and explained that NFTs “have no legal issues in China” as long as they are not connected to cryptocurrencies like Bitcoin that are banned in China.
He also said that China blocks all public blockchains like Ethereum, which is used as a public ledger to support and track NFT trading. Instead, the BSN network will use adapted blockchains from Ethereum and nine other platforms that meet regulatory requirements in China, such as ensuring that all users verify their identities and allowing the state to intervene in case “illegal activities” take place.
This has increased the penalty for utilizing an over-the-counter (OTC) desk while dealing with NFTs. As per the record, NFTs are not outlawed. However, any speculative trading of digital collectible tokens created from them is still forbidden. Meanwhile, according to a report, the compliance of digital collections is still unclear. Thus many platforms are taking a more active role in catching people who break the rules. This is to stop more people from doing the same things.
Also Read: UK’s First NFT Gallery To Open In London
The Fear of Getting Caught By Government
As can be seen, many tech companies are taking action. The primary reason for this is the rise in illegal transactions and bot purchases on the NFT platforms. In regard, under the blanket ban on crypto issued in September 2021, some undertakings were announced. Any companies discovered facilitating crypto transactions or foreign crypto corporations were held liable. Currently, these companies have changed their user agreements. It looks like they want to avoid getting caught by the government.
Even though cryptocurrencies are illegal in China, NFTs are not banned by the Beijing authorities. As a result of this, Tencent and Alibaba, among others, have recently filed several new NFT patents. However, as there are benefits of digital collectibles, there are also some disadvantages. Despite their popularity in China, they are opening the door to price speculations and other types of fraud.
Also Read: American Express In Metaverse | Trademark Filed For NFTs And Metaverse
That’s all for China remove NFT platform from internet.
We can conclude that although NFTs are not completely banned in China, you have to buy them in the right way. If you buy NFTs in the wrong way then you might land at a big loss. NFTs are changing the world quickly, and governments are trying to control decentralized exchanges.
Keep exploring our website to know more about NFTs.
Frequently Asked Questions
Q1. Is NFT Illegal In China?
NFTs are not illegal in China, and several tech giants – including South China Morning Post owner Alibaba Group Holding’s fintech affiliate Ant Group, Tencent Holdings, JD.com and Baidu – as well as the official Xinhua news agency – have launched NFTs using the term “digital collectibles”.
Q2. Can I Sell NFT In China?
The problem: Mining, trading, and exchanging crypto into fiat money is banned in China. Without legal access to ETH, there’s no safe way to sell or purchase an NFT the way it is done outside China.
Q3. Will The Government Ban NFT?
Trading in crypto (private) is not illegal as it is now under the tax. Bitcoin, Ethereum or NFT will never become legal tender, finance secretary TV Somanathan said clarifying India’s stand on private crypto, RBI digital money, and crypto tax, a day after Union Budget 2022