WeChat Bans Crypto and NFT Public Accounts

  • WeChat, China’s largest social media platform with over 1.1 billion daily users, has changed its policy and will now ban accounts connected to crypto and NFTs.
  • The platform has placed “engaging in virtual currency or digital collection business” under its illegal operations clause, meaning it will be considered as “violating content”.
wechat

Shutterstock

WeChat, China’s largest social media platform, has updated its policies and will now ban accounts that provide services related to cryptocurrencies and nonfungible tokens (NFTs).

The development was first reported on Monday by Hong Kong-based crypto reporter Wu Blockchain (Colin Wu), who noted that WeChat public accounts involved in the issuance, trading, and financing of crypto and NFTs will either be restricted or banned. The social media platform’s new policy also covers the secondary trading of NFTs, noting that such accounts “shall also be dealt with in accordance with this article”.

The social media platform has now put “engaging in virtual currency or digital collection business” under its “illegal business operations” clause, meaning crypto activities will now be considered as “violating content”. This action can be viewed as quite significant, considering WeChat has over 1.1 billion daily active users in China.

While WeChat has decided to ban accounts connected to cryptocurrencies and NFTs, it still provides its users with access to a digital currency. At the start of the year, the Chinese social media platform added support for the country’s Central Bank Digital Currency (CBDC) to its WeChat Pay wallet, one of China’s most popular payment services. The People’s Bank of China (PBoC) has been conducting tests using the digital yuan (e-CNY) for two years now, and has already completed billions worth of transactions.

Discussion
Related Coverage
Blockchain, NFT, and Metaverse Included in Shanghai’s 5-Year Development Plan
  • One of the main points in Shanghai’s five-year development plan was metaverse, with the government planning to fund more than 100 firms focused on virtual reality.
  • The city will also encourage the development and application of “blockchain+” technology, and the promotion of NFT trading platforms.
July 13, 2022, 2:58 PM

Panoramic view of Pudong business district, Shanghai, China. Nick N A/Shutterstock

Animoca Brands Doubles Valuation to $5B
  • The $359 million funding round will help Animoca Brands fuel new acquisitions and investments, product development, and licenses for popular intellectual properties.
  • The company has more than doubled its valuation with this funding round, considering it raised $65 million at a $2.2 billion valuation last October.
WeChat Adds Support for China’s CBDC
  • China’s CBDC has been in development for years now, and has been used in numerous tests around the country since 2020.
  • In order to use the CBDC for payments users will first need to verify their identity using the digital yuan wallet app.