According to recent reports, the city of Wuhan in China has halted its plans to create non fungible tokens (NFTs) due to the increasing legislative uncertainties around cryptocurrencies and Web3 technologies in the country.
After the first outbreak of the coronavirus, Wuhan made the first statement of its plans to promote the metaverse and NFTs as a strategy to rebuild its economy, which had been negatively affected by the epidemic. This was done in an effort to bring the town back from the brink of collapse. During the COVID-19 epidemic, the city was the centre of all the initiative and activity of the outbreak.
There was a mention of NFTs in the preliminary version of the government of Wuhan’s industrial strategy for the growth of the city’s metaverse economy. According to a recently changed strategy, Wuhan wants to be the birthplace of more than 200 metaverse companies and set up at least two industrial parks for the metaverse by 2025.
Despite the country’s overall restriction on cryptocurrencies, China’s government said at the start of the year that it intended to distinguish non-fungible tokens (NFTs) from cryptocurrencies in order to allow the growth of the budding industry.
This sparked a boom in interest among Chinese organisations, resulting in a flood of listings from Shanghai on the cryptocurrency marketplace NFT Opensea while COVID was shut down. But with the rise in popularity came a rise in the number of scams. This is why the government has warned investors many times to stay away from NFT trading.
Following many years of restrictions on the use of cryptocurrencies inside the country, China eventually opted to institute a blanket ban on their use in 2021. But right now, it’s not clear what the government’s position is on developing Web3 technologies, especially those that involve trading tokens or digital collectibles, which are sometimes called NFTs.
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