WeChat Suspend NFT.jpg.optimal WeChat Forbids Users From Crypto and NFT Use!

WeChat Forbids Users From Crypto and NFT Use!

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-WeChat has issued new rules regarding crypto assets
-The platform has over 1.2 billion monthly active users
-WeChat will restrict or ban accounts that issue, trade, or finance cryptocurrencies or NFTs
-Such digital assets are now considered illegal business
-If a violation is found from one of the accounts, then the account will be asked to correct it within a certain deadline
-The account can be restricted
-WeChat can permanently block the account in question
-Senior Analyst of research firm Trivium, Bao Linghao, said that to date there are no formal rules related to NFT trading
-WeChats move is a preventive action to keep the company out of trouble
-Chinese regulators dont like speculation of any kind, including NFTs, he said
-WeChat itself is an application under Tencent Holdings
-With the number of monthly active users reaching 1.3 billion users, the ban will certainly have an impact on NFT trading
-As of last April, Chinese Financial Institutions have already been asked not to use NFTs in securities, insurance, lending institutions, and precious metals
-Banking institutions are also urged not to facilitate NFT-related trading transactions
-The action seems to be related to the steps that will be taken by the Chinese government regarding digital assets
-China views NFTs as having the potential to become a means of collecting funds, both legally and illegally
-Therefore, it is feared that underground banks or loan sharks will emerge, as well as shadow banking activities
-The Chinese governments strictness also applies to crypto assets, which prohibit Bitcoin and other virtual currencies as a means of transaction
-Not only that, the initial coin offering (ICO) process, as well as crypto mining activities, are strictly not allowed
-China has its own digital collection separate from the global NFT marketplace
-The collection is also printed on certain blockchains whose application is permitted by the local government
-The digital collection can be purchased in Yuan
-However, it is not allowed to resell such collections in the secondary market
-When the local government tightened the rules regarding the use of NFTs, several giant companies from China had actually started NFT businesses abroad first
-For example, Bilibili plans to release 10,000 unique avatar collections through CryptoNatty
-TikTok, a video-sharing platform owned by ByteDance has released its NFT collection in October last year

 

 

WeChat Suspend NFT.jpg.optimal WeChat Forbids Users From Crypto and NFT Use!
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