Popular social networking sites like Facebook have been forbids in China in an effort to limit internet activity. The country’s strictness on these types of messaging apps has now shifted. Its focus towards cryptocurrency and NFTs on the country’s popular social media platform WeChat.
In a country with more than 1 billion users, WeChat is the most popular social media platform. However it has recently received new regulations which will prohibit people from providing access to crypto assets on its site.
The new standards will restrict the trading and financing of crypto assets. The categories for restricted businesses include “illegality,” according to recent reports.
The recent amendment to the Code of Conduct has made it clear that any account participating in virtual currency issuance or trading will face repercussions.
The ban on WeChat could possibly be permanent and the identified accounts may never again use the platform again.
The modified rules state that profiles that offer secondary NFT trades will be dealt. With in compliance to the amended regulations.
The news came from Hong Kong-based crypto writer Colin Wu. Who shared a screenshot of the rules on Twitter.
The tweet provided more details on the ban, saying:
“The account number involves the issuance, transaction. Also financing to virtual currency, such as providing transaction entry, guidance, issuance channel guidance, etc. Including not limited to the following types,” the tweet said.
“3.24.1 The transaction and exchange business between virtual currency and real currency, virtual currency and virtual currency; 3.24.2 provide information intermediary and pricing services for virtual transactions; 3.24.3 token issuance financing and virtual currency derivatives trading.”
According to the new rules, the platform will order a violating account to correct itself within a set amount of time after infractions are did find. Their ability(ies) on the platform may be bound until permanent closure occurs if they are unable to do so or if they do not respond after many rounds of messages seeking correction on time.
The Chinese government had banned the local crypto sector, but it seems like WeChat may have let this go overlooked since last year when they first announced their policy update on digital currencies. The recent update may indicate their stricter outlook.