Wuhan omits NFTs from metaverse plan amid regulatory uncertainty in China

The Chinese government has shown strong interest in developing a metaverse economy, but its stance on NFTs has not been very clear.

The Chinese city of Wuhan has reportedly shelved its ambitious non-fungible token (NFT) plans amid growing regulatory uncertainty around crypto and Web3 technologies in the country.

Wuhan first announced plans to support the metaverse and NFTs in the wake of the coronavirus outbreak to boost its pandemic-ruined 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 now been omitted from the latest version, according to a report by the South China Morning Post. The report notes that the revised version still encourages companies to focus on decentralized technology and Web3, but makes no mention of NFTs.

Under the newly revised plan, Wuhan aims to foster more than 200 metaverse enterprises and build at least two metaverse industrial zones by 2025.

Looking at the revised version of the draft, the Chinese government seems to be removing anything that involves the trading of tokens or digital properties. The position has been clear over the years, as government development plans have included technologies related to the metaverse. For example, several Chinese cities, including capital Beijing and Shanghai, have announced metaverse innovation plans, but any private company or tech giant involved in NFT has faced government hostility.

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