WeChat Suspends Secondary NFT Sales

China's largest messaging platform introduces blockchain regulations following changes in national law

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WeChat Suspends Secondary NFT Sales
Virtual RealityNews Analysis

Published: April 6, 2022

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Rory Greener

In early April, WeChat, China’s largest messaging application, has begun suspending an undetermined number of user accounts distributing second-hand blockchain services, reports revealed last week.

The platform prohibits the secondary sales of non-fungible tokens (NFTs) and blockchain services due to their ‘speculative’ nature but confirmed it will not halt NFT integration on the application entirely.

WeChat supports NFT sales through its Mini Programme, allowing certain accounts to showcase and sell blockchain goods first-hand.

According to reports, Tencent, the parent company of WeChat and sister platform Weixen, host a total of 1.2 billion users, with further reports claiming the firm is banning many accounts from its large user base.

Getting Certified

The banning relates to Chinese laws prohibiting public and small business accounts from selling blockchain goods without official certification from the Cyberspace Administration of China (CAC).

To provide blockchain services on WeChat, accounts must partner with a blockchain company already certificated by the CAC, reports found.

The CAC imposed the “Blockchain Information Service Management Regulations” ruling nationwide in 2019, which apply to any Chinese organisation seen as a “blockchain information service provider.”

Also, the orders mean that vendors cannot operate blockchain services anonymously, so providers must submit national citizenship card information before receiving certification.

As blockchain and NFT technology evolve, WeChat says it will continue to refine its rulings to best match the emerging marketplace.

The news comes after Tencent raised concerns in a 2021 conference call with hopes the Chinese government would allow the firm to develop a Metaverse platform that follows national regulations.

Tencent has remained dedicated to immersive application development. For example, the firm owns roughly 40 percent of Epic Games, the company behind the massively popular real-time 3D (RT3D) platform Unreal Engine.

Chinese XR

The news comes after Qualcomm announced a major partnership with Chinese firm BtyeDance, Pico Interactive and Tiktok’s owner, to design hardware and software for extended reality (XR) ecosystems.

The three firms entered the strategic partnership to encourage the development of XR applications to innovate in spatial computing and Metaverse-related technology.

Additionally, Magic Leap rival Nreal recently secured $60 million in Series C+ funding so the firm can reach global markets following a successful launch in the US. The Alibaba Group led the financing, whose capital also allowed the firm to expand locally.

 

 

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