Image Source: Visual China

BEIJING, March 30 (TMTPOST) — Chinese social media platform WeChat is cracking down on NFT (non-fungible token) trade on its platform, according to a news report of financial media Jiemian.

Most of the official accounts related to NFT on WeChat have been banned, Jiemian reported on Tuesday. Over ten NFT trading platforms have been affected, many of which are small and medium-sized NFT platforms.

A non-fungible token is a non-interchangeable unit of data stored on a blockchain, a form of digital ledger, that can be sold and traded. Types of NFT data units may be associated with digital files such as photos, videos, and audio.

Top platforms such as Tencent’s Huanhe are not affected by the crackdown. It is reported that most of the NFT trading platforms are suspended because they did not acquire relevant business licenses to conduct certain business operations on WeChat’s platform. Some platforms were suspended because of risk of fraud.

The affected official accounts include Art Meta, Huasheng Meta, iBox, One Meta, and Yidianshucang.

WeChat said that it recently cracked down on official accounts and mini-apps that engaged in flipping the price of NFT and NFT transactions to comply with relevant rules and laws on cryptocurrency.

Official accounts that are related to NFT trading on WeChat’s platform shall provide proof of cooperation with blockchain firms that have been put on record with the Cyberspace Administration of China, according to a news report by Global Times. Second-hand trading of NFT is banned on WeChat.

WeChat warned that violation of relevant rules might result in the banning of accounts or complete removal from the platform.

WeChat said that official accounts on its platform can only be used for displaying NFT and first-hand trading.

Pundits told Blockchain Daily that NFT continues to be more of financial product in China. In overseas markets, the value of NFT comes from its exchange value and cultural recognition.