All about the WeChat crypto and NFT ban
WeChat, China’s biggest social media platform, has just announced a ban on all crypto and NFT-related accounts. The move is the latest example of China’s strict position when it comes to crypto.
The Hong Kong-based crypto news reporter Colin Wu shared the updated policy on Twitter on Monday. In the tweet, Wu notes that public accounts on WeChat that involve “the issuance, trading and financing of crypto and NFTs” are subject to a ban. The reporter also highlights that WeChat, has an astounding 1.1 billion daily active users in China.
This is yet another setback for the crypto community in China who have long been at odds with the country’s government. In 2017, China implemented a nationwide ban on cryptocurrency trading and ICOs. The country has also cracked down on mining operations, forcing many companies to relocate elsewhere.
However, despite the obstacles, there is still a large and vibrant crypto community in China. According to a recent report by CoinDesk, almost 10% of Bitcoin’s total supply is held by Chinese investors. It remains to be seen how the latest WeChat ban will impact the crypto scene in China. While the Chinese government does not have direct control over WeChat or its policies, it is subject to strict rules and regulations that Chinese companies must follow. For example, under the China Internet Security Law and National Intelligence Law, WeChat is required to share data with the Chinese government. As a result, many people see WeChat as a surveillance tool that the Chinese government can use to track and monitor its citizens. In addition, China has taken steps to ban the use of most global cryptocurrencies and NFT platforms in recent months, further underscoring its strained relationship with these technologies. While it remains to be seen how this situation will develop over time, it’s clear that China currently has little interest in crypto or NFTs.
China has had a complicated relationship with cryptocurrency. On the one hand, the country has experimented with both NFTs and its own centralized digital currency. On the other hand, the decentralized aspects of crypto are the main pain point as far as the Chinese government is concerned. This is evident in the crypto WeChat ban. It is clear that the Chinese government is struggling to find a balance between its own interests and the decentralized nature of cryptocurrency.