China’s largest messaging app, the latest WeChat has introduced stricter rules on NFT tokens. Based on the report, the platform bans public accounts involved in connection with NFT as a framework in complying with the new rules.
WeChat, which has more than 1.1 billion daily users, issued new rules on the production of digital assets. The “Code of Conduct” update states that based on section 3.24, any account involved in the production, trading and financing of virtual currency will be subject to certain clauses. Identified accounts will be restricted from certain functions that can lead to permanent bans.
The updated rules mention that accounts that provide NFT secondary transactions will also be convicted under the act. According to reports, WeChat has blocked the official account of "NFTea Digital Tea Ticket" for not complying with the rules. The account was found to be conducting secondary transactions of digital collections.
Previously, WeChat blocked a large number of accounts dealing in NFT. The move was made in line with increased scrutiny from the Chinese government. However, this resolution was taken to avoid speculation of risky digital asset trading. WeChat also issued notices to several NFT platforms to register certificates of eligibility if to engage further.
The Chinese government has become a country that has cracked down on cryptocurrencies. They have also banned cryptocurrencies and cryptocurrency mining. In April, Chinese financial and security institutions launched initiatives to prevent risks associated with digital assets.
