Crypto and NFT-Related Accounts are Prohibited on WeChat the Chinese Top Social Media Platform & Equivalent of WhatsApp

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Secondary NFT trading is also included by the policy, as the firm adds that “accounts that provide services or material connected to the secondary transaction of digital collections shall be dealt with.”

WeChat, China’s most popular social media platform, has revised its policy to prohibit accounts from providing access to crypto or NFT-related services.

Accounts involved in the issue, trading, and financing of crypto and NFTs will be restricted or prohibited under the new standards, and will fall under the “illegal business” category.

The corporation notes that “accounts that supply services or material relevant to the secondary transaction of digital collections will likewise be handled with in accordance with this rule.”

On June 20, Hong Kong-based crypto news reporter Wu Blockchain (Colin Wu) noted the move, pointing out the significance of the move considering WeChat’s 1.1 billion daily users in China.

“Once such breaches are identified, the WeChat public platform will, depending on the severity of the violations, instruct the violating official accounts to rectify within a time limit and restrict some features of the account until the permanent account is banned,” according to the new policy.

Between May and September of last year, the Chinese government implemented a phased ban on the local crypto sector. Given the time of the most recent WeChat policy amendment, it’s possible that the platform has been allowing some crypto activity to go undiscovered since then.

Furthermore, because the assets can be purchased in fiat, there is still a regulatory gray area in the country when it comes to NFTs. Nonetheless, to prevent potential regulatory difficulties related to the financialization of technology, most organizations and platforms prohibit secondary trading.

In April, the China Banking Association, the China Internet Finance Association, and the Securities Association of China issued a joint statement warning the public about the “hidden hazards” of investing in the assets.

Since March, popular platforms such as WeChat and the Ant group-owned WhaleTalk have been distanced from the technology, purportedly eliminating or banning NFT services from their networks due to a lack of regulatory clarity and fear of a Beijing crackdown.

Despite this, according to a local media article dated June 16, the number of digital collecting platforms in China has increased by 5X since February 2022, to over 500.

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