WeChat is the most used social media platform in China. They recently updated their policies to ban accounts that use cryptocurrencies, NFT, and others. Accounts involved with the issuance, trading, and financing of cryptos and NFTs will be restricted or banned.
The firm says that other accounts supplying services or content related to secondary trading of digital collections shall also be dealt with. Wu Blockchain Hong Kong Crypto news reporter Colin Wu points out the significance of the action given that Wechat has already started.
The rules regarding Wechat public accounts are updated to include 1 billion daily active users and have been involved in the issuance, trading, and financing of crypto. If such a violation is discovered WeChat is the best place to be for punishment. There is still a regulatory gray area in the country regarding NFTs.
Officials have questioned NFT assets because they can be purchased in fiat. Companies and platforms typically bar secondary trading to avoid potential compliance issues. WeChat and whale talk have stopped streaming NFT since March. Both reported to have ceased streaming or limiting NFT. The banking association of china and the internet finance association warned about hidden risks.
