WeChat, China’s popular messaging app, has terminated several accounts linked to Non-Fungible Tokens (NFTs) and explained the laws governing these digital collectibles.

According to the site, it has "rectified" accounts that it discovered were supporting NFT market speculation, which can contribute to drive up prices.

Non Fungible Tokens (NFTs) are digital tokens similar to the artwork that have become more popular, with some selling for millions of dollars. They're frequently built on a blockchain platform, such as Ethereum, with consumers paying in cryptocurrencies for the tokens.

In China, there are no restrictions on NFTs, despite the fact that cryptocurrency trading was outlawed last year. In China, NFTs are not purchased with cryptocurrency. People instead use the Chinese yuan to pay. They're also not built on a blockchain like Ethereum. Instead, they are based on other blockchains that are supervised by regulators.

However, there is no regulation of NFTs yet in the country. Users can buy these digital collectibles from a marketplace but secondary trading is heavily restricted. Because NFTs can be speculative, technology companies are taking a cautious approach so as not to get on the wrong side of any upcoming regulation.

Tencent, the company that owns Wechat, has not confirmed that accounts have been suspended. However, WeChat's official account on Weibo, a Twitter-like service, responded on Wednesday to a post by local media claiming the accounts had been suspended.

It clarified the restrictions regarding NFT accounts on its platform,. Tencent-verified accounts can showcase digital collectibles but not sell them on the secondary market.

They must present a certificate from China's cyberspace regulator proving that they are registered and allowed.