Popular Chinese messaging platform WeChat bans trading accounts in NFT, Cryptocurrency Service

Following a public crackdown by the Chinese government on anything related to cryptocurrencies, one of China’s most popular instant messaging and calling apps on WeChat has now banned accounts. related to cryptocurrencies on its platform. As suggested by the reports, accounts that issue, trade and fund cryptocurrencies and non-fungible tokens (NFTs) will be restricted under the new rules and will be classified as ‘businesses’. illegal business’. Section 3.24 of WeChat’s updated “Code of Conduct” states that any account involved in the issuance, trading or funding of digital currency will face consequences, with the possibility of being banned. permanent ban.

According to one statement provided to the South China Morning Post, Tencent said it would “require the accounts to be rectified if they provide relevant services or content for secondary trading of digital collectibles, and at the same time restrict some features or even ban accounts.” The news comes after WeChat admitted in April that it had suspended a number of NFT-linked accounts.

The policy update will also introduce penalties for accounts that provide trading channels, instructions, or issuance. electronic money for WeChat users. Initial Coin Offerings (ICO)-enabled accounts and transactions of crypto derivatives will also be affected.

The report notes that with this move, WeChat’s management is taking into account guidelines issued by Chinese regulators earlier this year, which suggested that businesses in the industry should steer clear of the financial aspect. mainstream of such digital assets.

Although NFTs have been largely neglected by Chinese regulators in the past, a recent report by China Times (via CryptoPotato) pointed out that the number of such platforms in the country has grown from around 100 to over 500 in 2022 alone.

Interestingly, in April, WeChat incorporated the Chinese government’s Central Bank Digital Currency project ‘digital yuan’ in its payment options. However, the recent revisions made in the policy indicate China’s strict supervision of cryptocurrencies or rather decentralization.

Ten cents The stance thus clears the way for its platforms – which have more than a billion users – to serve as a platform for China’s highly trackable digital currency, but not to host content about options. choose instead.

Cryptocurrency is an unregulated digital currency that is not a legal tender and is subject to market risk. The information provided in the article is not intended and does not constitute financial advice, trading advice or any other advice or recommendation of any kind provided or endorsed by NDTV. NDTV will not be liable for any loss arising from any investment based on any recommendations, forecasts or any other information contained in the article.

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