Social Media Platform, ‘WeChat’ has updated its policies to ban all accounts linked with trading in cryptocurrency and Non-fungible Tokens (NFT).
Under the new guidelines, the platform would tag any account linked with transacting or financing cryptos as restricted, ‘banned’, or an illegal business. ‘
The platform also said that the same action will be taken against accounts that transact or relate contents linked with the secondary transactions of digital currencies in the country.
The Chinese Government has since instituted some regulations on the crypto sector in the country.
Stakeholders in the finance and security sectors in China have also continuously warned residents of the risks associated with cryptocurrencies.
When it was launched in 2011, the country was one of the earliest to accept it. But China has since become one of the countries that have legislated strictly against the cryptocurrency industry.
In September 2021, the Central Bank of China declared illegal, all transactions related to cryptocurrency.
The ban, which was a blanket ban had covered all forms of cryptocurrencies.
According to China’s Government, cryptocurrencies were not fiat currencies and can not be circulated in its market.
“All crypto-related transactions, including services provided by offshore exchanges to domestic residents, are illicit financial activities, “the Peoples Bank Of China said in the statement.
The ban on cryptocurrency is one among the initiatives introduced to crack down on what China views as a volatile, speculative investment, with the possibility of enabling money laundering.
The country had serially identified the protection of investments as a major reason for the strict legislation.
Experts however believe that the banning of cryptocurrency in the country is a result of the likelihood of it destabilizing the country’s financial market.