WeChat, China's most popular social media platform, has updated its policy to prevent accounts from of WeChat, China's most popular social media platform, has updated its policy to prevent accounts from offering access to crypto or non fungible token (NFT)-related services.
According to reports, under the new regulations, accounts involved in the issue, trading, and financing of crypto and NFTs would be restricted or forbidden, and will fall in the "illegal business" category "a classification.
The "Code of Conduct" as amended "Any account that participates in the issuance, trading, or financing of virtual currency will face consequences, according to the law. For detected accounts, certain functions will be restricted, with the possibility of a permanent ban. According to the changed rules, profiles that provide secondary trades of NFTs will also be dealt with in accordance with the amended rules.Wu Blockchain (Colin Wu), a Hong Kong-based crypto news reporter, spotted the development and tweeted a screenshot of the amended restrictions.
Transaction Behavior of Virtual Currency and Digital Collections, according to the image linked to the tweet. "The account number involves the issuance, transaction, and financing of virtual currency, such as providing transaction entry, guidance, and issuance channel guidance, among other things, including but not limited to the following types..." it continues."Transaction and exchange business between virtual currency and real currency, virtual currency and virtual currency; information intermediary and pricing services for virtual transactions; token issuance financing and virtual currency derivatives trading," the document continued.
In terms of penalties, the new policy states that if such violations are discovered, the WeChat public platform will order the violating official accounts to rectify within a certain time frame and restrict some of the account's functions until the account is permanently banned, depending on the severity of the violations. Banned accounts must present a certificate of collaboration with a blockchain company to the platform.
The blockchain organisation must be registered and approved by the Chinese Cyberspace Administration.It is noteworthy that the popular Chinese platform had previously blocked a substantial number of NFT-related accounts. This decision was made in response to the Chinese government;increasing monitoring.An NFT is a digital asset that represents real-world elements such as art, music, video, and in-game stuff. They bought and sold online, and they usually encoded with the same underlying software as many other cryptos.
The Chinese government has been a vocal opponent of the country virtual digital assets. It has already outlawed the use of cryptocurrencies and mining of them. Even NFTs based on other assets are subject to resale limits and gifting restrictions.Chinese financial and security institutions launched a push in April to reduce the risks linked with digital assets. It was said that the NFT market may heat up in the future, and that there are certain hidden concerns, such as money laundering, linked with it.
However, popular platforms like WeChat and the Ant group-owned WhaleTalk have distanced themselves from the technology since March this year, supposedly deleting or prohibiting NFT services from their networks due to a lack of legislative clarity and fear of a Beijing crackdown.But the popularity of nonfungible tokens or NFTs is reportedly growing, as data has showed that the number of digital collecting platforms in China has risen to over 500, a 5X increase from February 2022, when there were just over 100.It was reported by local outlets that the fast increase in the number of NFT platforms coincides with the country growing interest in digital collectables.
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