WeChat set to ban crypto-related accounts

TL;DR Breakdown
  • WeChat announces ban on crypto-related accounts
  • The platform lists sanctions for guilty accounts
  • NFTs are still thriving in China

WeChat, a messaging application out of China, has just announced a ban on user accounts that provide access to digital assets. According to the update, the platform recently updated its policies to accommodate the new law, covering accounts that collect digital arts. In the new rule, accounts that carry out such activities will be suspended or banned. The platform also mentioned that such accounts would be placed under their illegal business section.

WeChat lists sanctions for guilty accounts

The new update also covers NFTs vastly, with the policy noting that both primary and secondary holders of digital arts will be banned on the platform. The move was made public by famous reporter Colin Wu who reports all kinds of crypto news from the country. He also talked about the effects of the new policies on the crypto market while noting that the platform boasts more than one billion users that use its services daily.

According to the details, WeChat mentioned that once it discovers an account flaunting the rules, it would be a call for such persons to follow the rule. During this period, the users will not be able to carry out certain activities with their accounts. It also stated that the account would be banned if they failed to fall in line after the period.

NFTs are still thriving in China

The Chinese government announced a ban on digital assets, which took hold in phases spanning from May to September 2021. However, with this new update, one can say that WeChat has been seeing a lot of spike in crypto activities on its platform since the period. This is one of the reasons why it took this measure to combat those activities. Also, China has not established a real policy concerning the trade and purchase of NFTs. This is because traders in the country are active in that section of the crypto market.

However, major stakeholders and top executives in the country have not gone well with the emergence of NFTs, with most wanting a ban. They feel that the asset class has a big risk that traders are not seeing now. Aside from WeChat, there have been platforms like WhaleTalk that have eliminated content regarding NFTs from their platform. These platforms fear regulatory sanctions and will not risk a full-blown investigation into their activities. Despite these rules, there has been a wide growth in the collectible sector of the country, seeing a massive 5x jump since the start of the year.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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