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Chinese messaging app WeChat bans crypto-linked accounts -Newshubweek

Chinese messaging app WeChat bans crypto-linked accounts
-Newshubweek
Written by Arindam

After the Chinese government imposed restrictions on the crypto segment last year, China’s most popular instant messaging and calling app WeChat has now blocked crypto-linked accounts on its platform. For this, WeChat has changed its code of conduct and has declared accounts related to trading and other activities of cryptocurrencies and non-fungible tokens (NFTs) as illegal business. In the new rules, it has been said that any account linked to digital currency can be permanently banned.

The South China Morning Post report states that such accounts will be ordered to be rectified. Some of their features will be banned or they will be banned completely. WeChat said in April that it had blocked some NFT-linked accounts. Under the new rules, WeChat users will also be fined for accounts that provide transaction channels, guidance or cryptocurrency. This will also affect accounts associated with Initial Coin Offering (ICO) and crypto derivatives transactions.

It has been said in the report that the management of WeChat has changed the rules in accordance with the guidelines issued by the Chinese regulators earlier this year. These regulators had advised the industry to stay away from such digital assets. However, before this, the regulators of China did not show a tough stand on the NFT segment. According to an estimate, the number of platforms connected to it in China has increased rapidly this year.

WeChat included the Chinese government’s central bank digital currency project Digital Yuan in its payment options in April. China started trials of the digital yuan or e-CNY earlier this year. In the last few months, some measures have been taken to increase its use. People’s Bank of China (PBoC) aims to increase the competition in the market through this digital currency. This will improve the efficiency and security of the payment system and will help in reducing the cost of transactions. Unlike cryptocurrencies, CBDCs do not have volatility and other risks. In the US, the Federal Reserve is exploring the possibility of launching a CBDC.

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