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WeChat prohibited accounts from accessing NFTs

source-logo  thecoinrepublic.com 22 June 2022 19:00, UTC

WeChat, China’s most popular social media platform, has revised its policy to prohibit accounts from providing access to crypto or nonfungible token (NFT)-related services.

Account will be banned if

Accounts engaged in the issue, trading, and financing of crypto and NFTs will be limited or prohibited under the new standards and will fall under the “illegal business” category.

Secondary NFT trading is also included under the policy, as the business adds that “accounts that provide services or material connected to the secondary transaction of digital collections must be dealt with.”

“Accounts that supply services or material related to the secondary transaction of digital collections will also be treated in accordance with this guideline,” the organization said.

On Monday, Hong Kong-based crypto news writer Wu Blockchain (Colin Wu) noted the move, pointing out the significance of the move given WeChat’s 1.1 billion daily users in China.

According to the new policy, “when such breaches are discovered, the WeChat public platform will push the breaking official accounts to correct within a time limit and restrict different parts of the account until the account is permanently banned.” 

Between May and September of last year, the Chinese government implemented a gradual ban on the local crypto industry.

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“Hidden hazards” 

The China Banking Association, China Internet Finance Association, and the Securities Association of China released a joint statement in April cautioning the public about the “hidden hazards” of investing in the assets.

Popular platforms like WeChat and the Ant group-owned WhaleTalk have reportedly distanced themselves from the technology since March, apparently deleting or prohibiting NFT services from their networks owing to a lack of legal certainty and the threat of retaliation from Beijing

Furthermore, because the assets may be acquired in fiat, there is still a regulatory gray area in the nation when it comes to NFTs. To avoid potential regulatory issues associated with the financialization of technology, most organizations and platforms restrict secondary trading.