China’s WeChat has banned accounts associated with secret currencies and NFTs

China’s leading social networking site WeChat has updated its policy of banning accounts that provide access to services related to secret money or non-fungal tokens (NFT).

Under the new guidelines, accounts involved in issuing, trading and financing secret money and NFTs will be restricted or banned and will be subject to the “illegal trade” unit.

The policy also applies to the second NFT business, the company noting that “accounts providing services or content related to the second transaction of digital collections must also be dealt with in accordance with this article.”

The move was echoed by Hong Kong crypto journalist Wu Blockchain (Colin Wu) on Monday, as he highlighted the importance of reality as WeChat has over 1.1 billion daily users in China.

WeChat, with more than 1.1 billion daily users in China, has updated its rules: WeChat public accounts involving the issuing, trading and financing of secret funds and NFTs will be limited or banned. https://t.co/0I9oMrvFTp

– Wu Blockchain (@WuBlockchain) June 20, 2022

In terms of penalties, the new policy states that “once such a violation is discovered, the public system WeChat, depending on the magnitude of the violation, will order that the defaulting account be revised within the deadline and restrict certain account performance. permanent residence is prohibited. “

The Chinese government launched a phased ban on the domestic crypto currency industry between May and September last year. However, given the timing of the last policy update on WeChat, this may suggest that the platform was allowing some crypto-related activities to be unrecognized since then.

Additionally, there is still a gray area in the country regarding NFTs as assets can be purchased in fiat currencies. Still, companies and platforms often ban high-tech business to avoid possible compliance issues over technology funding.

Authorities generally do not approve of NFTs, with the Chinese Banking Association, the Chinese Internet Finance Association and the China Securities Association issued a joint statement in April warning the public about the “hidden risk” of investing in assets.

Popular platforms like WeChat and WhaleTalk, owned by the Ant group, have been moving away from technology since March, after both began removing or blocking NFT platforms from their networks due to a lack of transparency of control and fears of Beijing repression.

Despite this, a local media report on Thursday highlighted data showing that the number of digital platforms being collected in China has increased to more than 500, a fivefold increase since February 2022.

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