WeChat, China’s most popular social media platform, has revised its policy to prohibit accounts from providing access to cryptocurrency or nonfungible token (NFT)-related services.
Accounts engaged in the issue, trading, and financing of crypto and NFTs will be limited or prohibited under the new standards and 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 line with this rule.”
On Monday, Hong Kong-based cryptocurrency news writer Wu Blockchain (Colin Wu) noted the move, pointing out the importance of the move given WeChat’s 1.1 billion daily users in China.
When such breaches are identified, the WeChat public platform will instruct the official breaching accounts to correct them within a time limit and suspend certain account features until the permanent account is blocked.
The Chinese government implemented a gradual ban on the local crypto industry between May and September of last year. However, given the time of the most recent WeChat policy amendment, the platform may have allowed some cryptocurrency activity to go undiscovered since then.
Moreover, since the assets may be acquired in fiat, there is still a regulatory gray area in the nation regarding NFTs. Nonetheless, to prevent possible 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, prominent platforms such as WeChat and the Ant group-owned WhaleTalk have been distanced from the technology, purportedly eliminating or banning NFT services from their platforms due to a lack of legal consistency.
Notwithstanding this, a local media post published on Thursday highlighted statistics revealing that the number of digital collectible platforms in China has increased by fivefold since February 2022, to over 500.