A Popular Chinese Messaging App Called WebChat Prohibits Accounts Dealing in NFT, Crypto Services. According to the Reports Accounts that issue, trade, and finance crypto and non-fungible tokens (NFTs) will be restricted under the new rules and will be classified as ‘illegal business'. Section 3.24 in the updated WeChat "Code of Conduct" declares that any account involved in the issuance, trading, or financing of digital currency will face consequences, with the possibility of a permanent ban.
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According to the Statement Given By South China Morning Post, Tencent said it will "order accounts to rectify if they provide relevant services or content for secondary trading of digital collectibles, and limit some features or even ban the account." The news comes after in April, WeChat acknowledged it had suspended some accounts linked to NFTs.
As Per the New Policy Update will Introduce Penalties The policy update will also introduce penalties for accounts providing transaction channels, guidance, or issuing Cryptocurrencies to WeChat users. Accounts enabling initial coin offerings (ICOs) and transactions of crypto derivatives will also be affected.
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The file notes that with the move, WeChat`s control is considering the tips issued with the aid of using Chinese regulators in advance this 12 months suggesting that groups withinside the enterprise have to steer clean of the monetary thing of such virtual assets.
WeChat with more than 1.1 billion daily active users in China, has updated its rules: WeChat public accounts which involved in the issuance, trading and financing of crypto and NFTs will be limited function or banned. https://t.co/0I9oMrvFTp pic.twitter.com/mzclYjFZNg
— Wu Blockchain (@WuBlockchain) June 20, 2022
Although NFTs had been in large part left on my own via way of means of Chinese regulatory our bodies withinside the past, a latest record via way of means of China Times (through CryptoPotato) suggests that the quantity of such systems withinside the u . s . has grown from approximately a hundred to over 500 in 2022 on my own.
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Interestingly, in April, WeChat had integrated the Chinese government`s Central Bank Digital Currency task `virtual yuan' in its fee options. However, the latest amendments made withinside the coverage do task China's strict tracking of crypto or alternatively decentralisation.
Tencent`s stance consequently clears the manner for its platforms – that have extra than 1 Billion users – to function a platform for China's very traceable virtual cash, however now no longer to host content material approximately alternatives.
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