China’s Top Social Media Platform ‘WeChat’ Bans Crypto and NFT Accounts

• WeChat may have neglected monitoring certain crypto activity after last year’s ban.
• It should be noted that NFTs may be acquired in fiat, which raises a legally murky area.

According to a recent policy change, the most popular Chinese social media platform, WeChat, now prohibits using any accounts that give access to crypto or NFT services. Cryptocurrency and NFT trading, issuing, and financing accounts will fall under the “illegal business” category under the new standards.

The policy states:

“Accounts that provide services or content related to the secondary transaction of digital collections shall also be dealt with in accordance with this article.”

Huge Blow to Crypto Industry 

On June 20, Hong Kong-based crypto news reporter Wu Blockchain (Colin Wu) drew attention to the move by pointing out its importance in light of WeChat’s 1.1 billion daily users in China.

In terms of punishment policy states:

“Once such violations are discovered, the WeChat public platform will, according to the severity of the violations, order the violating official accounts to rectify within a time limit and restrict some functions of the account until the permanent account is banned.”

The Chinese authorities implemented a gradual ban on the country’s cryptocurrency market between May and September of last year. WeChat may have neglected monitoring certain crypto activity since the most recent policy change was implemented.

It should be noted that NFTs may be acquired in fiat, which raises a legally murky area. The financialization of technology has led to a broad prohibition on secondary trading by corporations and platforms. In April, a joint statement from the China Banking Association, China Internet Finance Association, and Chinese Securities Association warned the public about the “hidden risks” of NFTs. In general, policymakers have been wary of NFTs.

Recommended For You: