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NFTs in China try to protect themselves from future state repressions

Key facts:

NFTs are still legal in China, but they are in a gray area in regulation.

Tencent, one of China’s tech giants, has been involved in this move.

Bitcoin has been banned in China on different occasions, and these regulations may extend to Non-Fungible-Token or NFT. Although their trade is still legal in China, some companies have decided to change their name as “token” to “digital collectibles.”

Companies like AntChain and Tencent they would have made the decision to ditch the name NFT, or anyone that was linked to bitcoin or cryptocurrencies, as a protection measure against state repressions, as reported by Bloomberg on October 26.

In the case of Tencent, one of the largest technology corporations, not only in China, but in the entire Asian continent, last August the launch of its NFT platform was known by ..

The measure, according to Bloomberg, It was taken in mid-September, this in the case of AntChain, according to a source from the portal. In the case of Tencent, the date on which the name change was decided is unknown.

Protection from future Chinese repressions

The name change is not the only measure taken. While it seeks to avoid a possible blockade by the Chinese government against everything that the cryptocurrency ecosystem means, including NFTs. The now “collectible assets” are still part of a blockchain. This could mean that your trade may be considered illegal due to current regulations.

An NFT can be freely exchanged. This means that it is very easy to speculate on its price. Due to this, another of the measures taken by AntChain was to limit the holding time. In this case, those who acquire an NFT in your company they must keep it in their wallet for a period of 180 days, date on which they will be able to transfer it to another account, free of charge, without there being a trade in between.

In the case of Tencent, according to a testimony from Bloomberg, the company “will not tolerate any illegal activity, including those related to cryptocurrencies.” This could also mean, that like AntChain, Tencent enforces limitations on NFT trades between users.

China and its regulations no longer affect Bitcoin

China has banned Bitcoin, so far, as reported by CryptoNews, a total of 8 times. The latter being one of the strongest cases, since the Central Bank of the country has prohibited any commercial activity that includes cryptocurrencies, including mining.

By 2019, the current president of China, Xi Jinping, mentioned that the country would be open to the growth of blockchain in his region. Source: Forbes.

The attack on miners last May severely affected the price of bitcoin, taking it from $ 54,000 to around $ 30,000. A drop of almost 50%. Nevertheless, In China’s most recent veto, it pushed bitcoin to a new all-time high.

Regulations, particularly in China, seem to no longer affect bitcoin, however, independent companies within the Asian country must watch their backs, since regulations can mean millions in losses. In the case of Tencent, which has already been attacked by the State itself, losing about 10% of the value of its shares, seems to try not to fall into a conflict of interest with the regulations of his country.

About the author

Donna Miller

Donna is one of the oldest contributors of Gruntstuff and she has a unique perspective with regards to Science which makes her write news from the Science field. She aims to empower the readers with the delivery of apt factual analysis of various news pieces from Science. Donna has 3.5 years of experience in news-based content creation, and she is now an expert at it. She loves journalism, and that is the reason, she moved from a web content writer to a News writer, and she is loving it. She is a fun-loving woman who has very good connections with every team member. She makes the working environment cheerful which improves the team’s work productivity.

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