WeChat, the most popular social media platform in China with more than 1.1 billion daily users, has revised its policy to ban accounts from providing access to services related to encrypted or non-perishable tokens (NFT).
According to reports, accounts involved in issuing, trading and financing cryptocurrencies and NFTs will be restricted or banned under the new standards and fall under the category of “illegal business.”
Section 3.24 of the revised Code of Conduct states that any account that participates in the issuance, trading or financing of virtual currency will face repercussions.
Certain functions will be restricted to selected accounts, with the possibility of permanent bans.
Profiles providing secondary trades for NFTs will also be handled in accordance with the revised rules, in accordance with the revised rules.
Hong Kong-based crypto-news writer Colin Wu noticed the move and tweeted while sharing a screenshot of the updated rules.
According to the image attached to the tweet, it reads: “3.24 Transaction behavior of virtual currency and digital combinations.”
It further states: “The account number includes the issuance, transaction and financing of the virtual currency, such as providing transaction entry, routing, issuing channel instructions, etc., including but not limited to the following types…”
“3.24.1 Commercial transactions and exchanges between virtual currency, real currency, virtual currency and virtual currency; 3.24.2 providing information intermediary and pricing services for virtual transactions; 3.24.3 financing the issuance of tokens and trading virtual currency derivatives.”
In terms of penalties, the new policy states that once such violations are detected, the public WeChat platform will order the offending official accounts to rectify within a time limit and restrict some account functionality until the account is permanently banned, depending on the severity of the violations.
The platform requires banned accounts to provide a certificate of partnership with a blockchain institution. The China Cyberspace Administration must register and approve the blockchain organization.
It is worth noting that the popular Chinese platform has previously banned a large number of accounts associated with NFT. This decision was made in response to the Chinese government’s increased scrutiny.
NFT is a digital asset that represents real-world items such as art, music, video, and in-game objects. They are bought and sold online, and are usually encoded with the same basic software as many other cryptocurrencies.
The Chinese government has long been an outspoken opponent of the country’s virtual digital assets. It has already banned the use and mining of cryptocurrencies. Even NFTs based on other assets are subject to resale restrictions and gift restrictions.
In April, Chinese financial and security institutions launched a campaign aimed at reducing risks associated with digital assets. He stated that the NFT market may get hotter in the future and that there are some hidden risks associated with it, such as money laundering.
However, since March of this year, popular platforms such as WeChat and WhaleTalk owned by Ant Group have been turned away from the technology, allegedly removing or banning NFT services from their networks due to a lack of regulatory clarity and fear of Beijing’s crackdown.
But the popularity of non-fungible tokens, or NFTs, is said to be growing, as data shows that the number of digital aggregation platforms in China has risen to more than 500, a 5-fold increase from February 2022, when there were just over 100.
Local outlets report that the rapid increase in the number of NFT platforms coincides with the country’s growing interest in digital collectibles.