The Chinese city of Wuhan has reportedly scrapped its plans to pursue non-fungible tokens (NFTs) amid growing regulatory uncertainty surrounding cryptocurrencies and Web 3.0-related technologies in the country.
Wuhan first announced its plans to support the metaverse and NFTs after the coronavirus outbreak as a way to boost its pandemic-wracked economy. The city was the epicenter of the COVID-19 outbreak.
The Wuhan government’s draft industrial plan for the development of the city’s metaverse economy included a line on NFTs. However, that part has been omitted in the latest version, according to a note from the South China Morning Post. The report notes that the revised version continues to encourage companies to focus on decentralized technology and Web 3.0, but does not mention NFTs.
With the new revised plan, Wuhan aims to foster more than 200 metaverse companies and build at least two metaverse industrial estates by 2025.
If you look at the revised version of the project, the Chinese government seems to dispense with anything that involves the exchange of tokens or digital properties. The stance has been clear over the years, as government development plans have included metaverse-related technologies. For example, several Chinese cities, including the capital Beijing and Shanghai have announced plans for metaverse innovation, but any NFT-related private companies or tech giants have faced government hostility.
Earlier in the year, China sought to separate NFTs from cryptocurrencies in a bid to help the fledgling sector grow despite a blanket ban on the latter. This led to a spike in interest among Chinese communities as the NFT Opensea marketplace was flooded with listings from Shanghai during the COVID lockdowns.
However, with the rise in popularity, the number of fraudulent activities also increased, leading to several government warnings to investors against NFT trading.
China was very clear with its position on the use of cryptocurrencies in the country and finally imposed a general ban in 2021 after several years of numerous restrictions. However, the government’s stance on emerging Web 3.0 technologies, especially those involving the exchange of digital tokens or collectibles, or NFTs, does not seem entirely clear at the moment.
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