Disclaimer: We may earn a commission if you make any purchase by clicking our links. Please see our detailed guide here.

Follow us on:

Google News

WeChat Ban Users From Using Crypto and NFT services

Yusuf Balogun
Yusuf Balogun
Yusuf is a law graduate and freelance journalist with a keen interest in tech reporting.

Join the Opinion Leaders Network

Join the Techgenyz Opinion Leaders Network today and become part of a vibrant community of change-makers. Together, we can create a brighter future by shaping opinions, driving conversations, and transforming ideas into reality.

The Chinese-owned social networking and mobile payment platform app developed by Tencent, WeChat is introducing a new policy that prohibits its users from using certain services related to non-fungible tokens (NFTs) and cryptocurrencies on the platform.

According to the social networking platform, digital assets such as cryptocurrencies or NFTs are now considered illegal business on the platform via the new policy. Hence, the outlet will restrict or ban accounts that issue, trade, or finance such digital assets.

The new policy also imposes fines on accounts that provide transaction channels, advice, or cryptocurrency to Wechat users. Accounts that enable initial coin offerings (ICOs) and crypto derivative transactions will also be impacted.

According to the report, Wechat’s management is following guidelines provided by Chinese regulators earlier this year advising enterprises in the field to avoid the financial component of such digital assets.

Back in April this year, the Chinese Financial Institutions have already been asked not to use NFTs in securities, insurance, lending institutions, and precious metals.

Banks are also advised not to facilitate NFT-related trading activity. The measure appears to be tied to the Chinese government’s upcoming steps regarding digital assets. According to brokerage Guosheng Securities, China is poised to develop a centralized secondary trading platform for NFTs.

Speaking on the new development, Senior Analyst of research firm Trivium, Bao Linghao, said that to date there are no formal rules related to NFT trading. WeChat’s move is a preventive action to keep the company out of trouble.

In his words: “Tencent is acting preemptively to keep itself out of trouble,” he continued “Chinese regulators don’t like speculation of any kind, including NFTs.

Consequently, WeChat maintained that any users who violate the new policy will be asked to correct it within a certain deadline or restrict the account. Likewise, can permanently block the account in question. Stay connected with TechGenyz for more updates.

Join 10,000+ Fellow Readers

Get Techgenyz’s roundup delivered to your inbox curated with the most important for you that keeps you updated about the future tech, mobile, space, gaming, business and more.


Partner With Us

Digital advertising offers a way for your business to reach out and make much-needed connections with your audience in a meaningful way. Advertising on Techgenyz will help you build brand awareness, increase website traffic, generate qualified leads, and grow your business.

Power Your Business

Solutions you need to super charge your business and drive growth

More from this topic