Following Updated Terms of Service, WeChat will Ban Crypto and NFT-Linked Accounts

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WeChat, the Tencent-backed social messaging network in China, has announced its plans to tighten down on accounts tied to digital currencies and Non-Fungible Tokens indirectly (NFTs).

The social media giant has amended its terms of service, adding a new section that doubles down on its lack of support for any companies affiliated with the digital assets market, as originally reported by Colin Wu, an independent crypto writer.

Any account involved in the issue, transaction, or financings of virtual currency, such as providing transaction entry, guidance, or issuance channel guidance, will be suspended, according to the amended guideline.

Accounts that facilitate transaction and exchange business between virtual currency and real currency, virtual currency and virtual currency, and virtual currency and virtual currency; provide information intermediary and pricing services for virtual currency transactions; token issuance financing and virtual currency derivatives trading; and provide services or content related to the secondary transaction of digital collections are among those targeted.

While immediate account suspension is one of the sanctions the platform will impose, it also stated that depending on the severity of the offenses, it could potentially ban any user found guilty.

The Chinese government’s onslaught on Bitcoin and the broader cryptocurrency ecosystem is nothing new. Thanks to a complete prohibition enacted last year, the world’s most populous nation has been able to control the actions of miners working on its coasts.

NFTs have also come under fire from regulators, who claim they can be used to launder money. WeChat’s action could indicate a partial alignment with regulators, given Beijing’s strong stance on digital titans in the country.

While feelings toward digital currencies have mostly died down in China, with most major exchanges shuttering their doors, WeChat’s crackdown on NFTs will further dampen China’s chances of recovering its position as the world’s leading digital asset market.

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