While NFTs and digital collectibles may mean the same thing in many countries, they differ in the eyes of the Chinese government. Major NFT platforms are undergoing new measures to ensure they tread on no toes.
Tencent Holdings and Alibaba Group Holding are tightening rules that apply to non-fungible tokens (NFTs) on their platforms, as Chinese tech giants take preemptive measures to avoid potential scrutiny of the tokens, which are referred to as digital collectibles in the country because NFTs still operate in a grey area.
In newly updated terms of service, Alibaba affiliate Ant Group’s NFT platform Jingtan said that it would “alert the police and hand over [details] to judicial authorities” if users are found to be organising transactions outside the platform in ways that constitute criminal activities.
Buyers who use specialised software to snatch up digital collectibles during sales, or those who engage in money laundering and fraudulent activities, will also be reported to authorities, the company said.
Alibaba, owner of the South China Morning Post, did not immediately respond to a request for comment.
Separately, all-purpose super app WeChat, operated by social and gaming giant Tencent, has over the past few weeks banned several mini programs offering digital collectibles.
Among those banned was West Lake No 1, a digital collectible mini program offered by Hangzhou-based, Shenzhen-listed silk product manufacturer Wensli. In a statement published last week, West Lake No 1 said WeChat justified the ban by saying digital collectibles were among mini program service categories that had yet to be “opened up”. It added that it was now working on releasing a separate webpage and an app.
Unlike elsewhere, NFTs are priced and sold in China in yuan instead of using cryptocurrencies, and platforms do not allow the tokens to be resold after they are bought.
Both Alibaba’s Jingtan and Tencent’s Huanhe require buyers to register with their real names.
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