Crypto-related accounts will be banned on WeChat

0
2374

WeChat, a Chinese messaging service, has just declared a restriction on user accounts that grant access to intellectual assets. According to the update, the platform recently modified its regulations to reflect the new law, which covers accounts that collect digital artworks. The new regulation will suspend or ban accounts that engage in such behavior. According to the company, such accounts will be placed in the platform’s illicit business section.

WeChat has a list of accounts that have been sanctioned

The new regulation also applies to NFTs, stating that both main and secondary holders of digital artworks would be prohibited from using the site. Colin Wu, a well-known reporter who covers all aspects of cryptocurrency in China, announced the change. He also discussed the impact of the new laws on the cryptocurrency market, stating that the platform has over one billion users who utilize its services regularly.

According to the facts, WeChat stated that if it detects an account breaking the rules, it will issue a warning to those breaking the regulations. Users cannot do some actions with their accounts during this time. It further said that it would be banned if the account did not comply after the time limit.

In China, NFTs are still prospering

The Chinese government imposed a ban on digital assets, which would take effect between May and September 2021. However, following the release of this new version, WeChat has seen a significant increase in crypto activity on its platform. One of the grounds for taking this action to counteract those actions is because of this. Furthermore, China has not created a clear policy on the trade and acquisition of NFTs. This is since the country’s traders are engaged in that segment of the crypto market

However, the development of NFTs has angered significant stakeholders and senior executives in the country, with many calling for a ban. They believe the asset class has a significant risk that traders are now overlooking. Aside from WeChat, certain sites like WhaleTalk have removed NFT-related information from their services. These platforms are afraid of regulatory repercussions and will not risk a full-fledged examination of their operations. Despite these restrictions, the country’s collectibles industry has seen a staggering 5x increase since the beginning of the year.

Leave a reply

Please enter your comment!
Please enter your name here