After a public crackdown by the Chinese government on anything to do with cryptocurrency, one of China’s most popular instant messaging and calling apps on WeChat has now banned crypto-related accounts on its platform. As reports suggest, accounts that issue, trade, and fund crypto and non-fungible tokens (NFTs) will be restricted under the new rules and will be classified as “illegal activities.” Section 3.24 of the updated WeChat “Code of Conduct” states that any account involved in issuing, trading or funding digital currency will face consequences, with the possibility of a permanent ban.
According to a statement provided to the South China Morning Post, Tencent said it “will direct accounts to rectify whether they provide services or content relevant to secondary trading of digital collectibles, and limit certain features or even to ban the account. The news comes after WeChat admitted in April that it had suspended some NFT-related accounts.
The policy update will also introduce penalties for accounts providing transaction channels, advice or issuing cryptocurrencies to WeChat users. Accounts enabling initial coin offerings (ICOs) and crypto derivatives transactions will also be affected.
WeChat, with over 1.1 billion daily active users in China, has updated its rules: WeChat public accounts involved in issuing, trading and funding crypto and NFTs will be restricted or banned. https://t.co/0I9oMrvFTp pic.twitter.com/mzclYjFZNg
– Wu Blockchain (@WuBlockchain) June 20, 2022
The report notes that with the move, WeChat management is heeding guidelines issued by Chinese regulators earlier this year suggesting that companies in the industry should avoid the financial aspect of these digital assets.
Although NFTs have largely been left alone by Chinese regulators in the past, a recent report from China Times (via CryptoPotato) indicates that the number of such platforms in the country has grown from around 100 to over 500. than in 2022.
Interestingly, in April, WeChat had integrated the “digital yuan” from the Central Bank of China’s digital currency project into its payment options. However, recent changes to the policy project China’s strict crypto oversight or rather decentralization.
Tencent’s position therefore paves the way for its platforms – which have more than a billion users – to serve as a platform for China’s highly traceable digital money, but not to host content about the alternatives.
Cryptocurrency is an unregulated digital currency, which is not legal tender and is subject to market risk. The information provided in the article is not intended to be and does not constitute financial advice, business advice or any other advice or recommendation of any kind offered or endorsed by The AU Times. The AU Times shall not be liable for any loss resulting from any investment based on any perceived recommendation, forecast or any other information contained in the article.