WeChat targets NFT and crypto accounts with new policy update
In a recent policy update, China’s top social media platform WeChat has banned all accounts that provide access to crypto or NFT-related services.
As per the new guidelines, all public accounts on its platform dealing with the issuance, trading and financing of crypto and NFTs will now fall under the “illicit business” category and will be either banned or banned altogether. The policy states that:
Accounts providing services or materials relating to secondary transactions of digital collection shall also be disposed of in accordance with this article. […] Once such breaches are identified, the WeChat public platform will, depending on the severity of the breaches, direct the breaching official accounts to be rectified within a time frame and certain features of the account until the permanent account is banned. will prohibit.
Targeted accounts include exchange businesses between virtual and fiat currency or between cryptocurrencies, which provide information, arbitrage and pricing services for crypto transactions, as well as accounts with token issuance financing and cryptocurrency derivatives trading. Huh.
Hong Kong-based crypto news reporter Colin Wu of Woo Blockchain publicized the move on Monday, highlighting the importance of action given WeChat’s more than 1.1 billion daily users in China.
WeChat, with more than 1.1 billion daily active users in China, has updated its rules: WeChat public accounts that are involved in the issuance, trading and financing of crypto and NFTs will be limited or restricted. pic.twitter.com/mzclYjFZNg
— Wu Blockchain (@WuBlockchain) June 20, 2022
The ban comes at a time when Chinese companies are demanding compliance with Beijing’s order against speculative activity in NFTs.
The Chinese government implemented a phased ban on the local crypto sector between May and September last year and given the timing of the WeChat policy revision, the platform may have allowed some crypto activity to be ignored since then.
Interestingly, there is still a regulatory gray area in the country regarding NFTs as assets can be purchased via fiat currency.
Meanwhile, most organizations and platforms already prohibit secondary trading to prevent potential regulatory difficulties related to finance in the technology. Since March, popular platforms such as WeChat and Ant Group-owned WhaleTalk have distanced themselves from the technology, reportedly eliminating or banning NFT services from their networks due to a lack of regulatory clarity and fear of Beijing’s action. have make.
Generally, authorities in the country have maintained an anti-crypto stance, with the China Banking Association, the China Internet Finance Association and the Securities Association of China issuing a joint statement in April to the public about the “hidden risks” of investing. Told. properties.
While sentiment about digital currencies in China has largely waned, with most major exchanges in the country shutting down, the latest crackdown on NFTs by WeChat boosts China’s chances of taking the top spot as a world power. and will reduce it. digital asset.
Ironically, data presented by a local media report from Thursday showed that the number of digital collectibles platforms in China has exceeded 500, a five-fold increase since February 2022.
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