China’s WeChat prohibits crypto and NFT-related accounts

WeChat, China's most popular social media platform, has updated its policies to prohibit accounts that provide access to crypto or NFT-related services.

Under the new standards, accounts connected with the issue, trading, and financing of crypto and NFTs will be either restricted or banned and will fall under the “illegal business” category.

Secondary NFT trading is also covered by the policy, with the firm noting that "accounts that provide services or content related to the secondary transaction of digital collections shall also be dealt with in accordance with this article."

The move was noted by Hong Kong-based crypto news reporter Wu Blockchain (Colin Wu) on June 20, as he pointed out the significance of the action given that WeChat has more than 1.1 billion daily users in China.

According to the new policy, "after such breaches are identified, the WeChat public platform will, depending on the severity of the violations, instruct the violating official accounts to rectify within a time limit and restrict various features of the account until the permanent account is banned."

Between May and September of last year, the Chinese government implemented a phased ban on the local crypto sector. However, considering the time of the newest WeChat policy amendment, it could imply that the platform has been ignoring certain bitcoin activity since then.

Furthermore, because the assets can be purchased in fiat, there is still a regulatory gray area in the country regarding NFTs.

Nonetheless, firms and platforms often prohibit secondary trading in order to prevent any regulatory difficulties related to the financialization of technology.

The China Banking Association, the China Internet Finance Association, and the Securities Association of China issued a joint statement in April warning the public about the "hidden risks" of investing in NFTs.