WeChat China Bans Crypto and NFT Related Accounts

WeChat, arguably the most important social media platform in China, has updated its policy. This will prohibit accounts that provide access to crypto or NFT related products or services.

Restriction or Banishment

Accounts involved in the issuance, trading and financing of crypto and NFTs will be restricted or banned under the new guidelines. They fall under the category of ‘illegal affairs’ due to the amendment of the policy.

Considering that WeChat has more than 1.1 billion daily users in China alone, this decision has a huge impact. It is worth noting that the policy will punish according to the extent of violations. The smaller the violation made, the smaller the penalty. This does not mean that everyone who carries out crypto or NFT activities will necessarily be banned from the platform.

NFTs still gray area

Last year, the Chinese government has already completed several phases to ban cryptos locally. Given the timing of the latest policy update on WeChat, it could indicate that the platform has been letting some crypto activity go undetected since then.

NFTs are currently still in a gray area in China. The digital assets can currently still be bought in fiat in China. However, it is not known whether this will always be the case. More and more Chinese companies are banning NFTs from their platforms.

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In general, officials have frowned upon NFTs, with the China Banking Association, the China Internet Finance Association and the Securities Association of China releasing a joint statement in April this year warning the public about the hidden risks of investing in the digital assets. .

Several major platforms like WeChat and WhaleTalk have been distancing themselves from the relatively new technology since March of this year, after they both started removing or restricting NFT platforms from their networks. This is mainly due to a lack of regulatory clarity and fears of a crackdown from Beijing.

Finally, however, this does not mean that the number of digital collecting platforms in China is still growing. This number has since grown to more than 500, which is five times more than in February this year.

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