WeChat introduces a new update to its platform that bans accounts associated with non-fungible tokens.
China has had a difficult relationship with digital assets and blockchain over the last couple of year
s. China was originally a country that allowed mining, trading, and other activities.
However, 2021 saw crackdowns on nearly everything. This was mainly due to high energy use and the perceived gateway to operations which is frowned upon.
The latest in a series of crackdowns All cryptocurrency mining are eventually banned in China. Many miners fled to neighboring countries like Kazakhsta
n and Iran as a result.
China is still conducting some digitally-related research, particularly around CBDCs.
WeChat, the largest social network in China, has updated its ToS and decided to ban any content that promotes digital assets.
Colin Wu, a Hong Kong-based journalist, discovered the change in WeChat's policy towards the crypto world.
NFTs Are Also Targeted
NFTs had been in China's grey regulatory zone before this update. While cryptocurrencies were heavily regulated, WeChat's ToS update targets NFTs.
"Accounts that provide content or services related to secondary transactions of digital collections shall be treated following the article."
According to the new ToS, accounts involved in "virtual currencies and digital collections" will be shadow banned.
This allows users who have been active with a community to remain active, but it removes them from search results.
Or terminated depending on perceived ToS violations.
NFTs used to be ignored by Chinese regulators in the past. However, China Times recently reported that over 500 of these platforms are now in China.
Wu Junjie, a researcher from the Harbin Institute of Technology, says that many of these are hampered by inexplicable compliance procedures concerning property rights and compliance.
"Regarding intellectual property rights compliance, the Hangzhou Internet Court has determined that digital collection platforms must undertake a higher preexamination obligation.
It has also launched a strict inspection and reporting mechanism for digital collections businesses.
These assets may have been subject to regulatory scrutiny due to the dramatic increase in NFT interest that culminated in the above-mentioned legal case.
WeChat has now begun to target "digital collection" along with cryptocurrencies.