Uncertainty regarding how cryptocurrencies will be regulated is likely the most troubling topic recently across regions and countries, particularly in Asia.
While authorities continue to work on legal frameworks, some businesses have taken action in the face of uncertainty.
Despite potentially tougher scrutiny, messaging service LINE is the latest behemoth to join the NFT forces.
LINE Goes Live With NFTs
LINE, the Japanese and South Korean messaging app, announced the launch of its NFT marketplace, LINE NFT, in Japan on Wednesday.
The platform is backed by LVC Corporation, the company in charge of LINE’s crypto and blockchain operations.
The announcement states,
“A non-fungible token (NFT) marketplace available only in Japan, LINE NFT will offer a wide variety of content, including exclusive NFT videos by Yoshimoto Kogyo Holdings Co. Ltd. Called Yoshimoto NFT Theater, NFTs from classic anime series Patlabor the Mobile Police, and NFTs of other popular characters.”
Users can now engage in NFT-related activities on the marketplace, such as trading, purchasing, or selling. LINE NFT was launched on the LINE blockchain.
Users must connect their LINE BITMAX Wallet to store their purchased NFTs. LINE NFT also allows holders of LINE NFTs to send or exchange NFTs with their friend contacts.
According to LINE, the initial supply of LINE NFT is estimated to be around 40,000 NFT products. LINE is currently one of Japan’s most popular texting apps.
The launch represents a potential for NFT to enter the mainstream in Japan, as the number of LINE domestic users is reported to exceed 90 million.
Furthermore, the BITMAX cryptocurrency exchange was in the works last year after acquiring a license from South Korea’s financial regulator, according to LINE Corp – a Tokyo division of South Korean internet giant Naver.
The project enables users of this messaging service to initiate transactions directly on the LINE network.
A Smooth Launch
Everything seems to be ok for LINE. On April 13, the Japanese messaging service LINE disclosed plans to start an NFT marketplace called “LINE NFT.” The impending marketplace also signified LINE’s collaborations with some of the country’s major entertainment businesses.
LINE has a big dream, especially given the regulatory uncertainty.
The team intends to broaden its market development strategy by including NFT into its official stamps and stickers.
According to the firm, LINE is also working on many other attractive aspects, such as leveraging digital collections as prizes for many upcoming social media initiatives.
WeChat Acts Differently
This year has witnessed a surge in NFT adoption as big players revealed plans to use it in a number of ways. However, the market remains unregulated.
There is currently no legal structure for pricing NFTs; the price is determined by the provider and buyer.
Anyone with access to the Internet may create an NFT, which means there will be a plethora of worthless products. No one can guarantee that these codes will last for a long time.
LINE has placed a bet on NFT. The move is considered spectacular, but it is also quite risky.
Because there is no legal structure in place for non-fungible tokens at the moment. While there is ambiguity about regulatory action against NFT, Japanese lawmakers are clearly keeping a close eye on the operation.
Unpredictable regulation is also emerging in China, which has gotten worse since the country officially prohibited cryptocurrency transactions.
WeChat, China’s most popular communication service, acted quickly to shield itself against the possibility of unpredictability within law. More than a dozen media accounts for platforms that enable NFT trading have been blocked by WeChat.
China is now taking a hard line on all currencies and digital assets.
If NFT wishes to trade, it must develop on a blockchain infrastructure that can be monitored by the regulator. There is currently no regulation of NFT in the country.
Users can buy these digital collectibles on the market, but secondary trade is quite limited. Because NFTs can be speculative, tech giants are playing it safe so as not to violate any forthcoming government regulations.