In the too long list of countries hostile to cryptocurrencies, China could serve as an example of the worst. Because it clearly manages to surpass Europe or France in the field, yet particularly virulent on the subject. With a power in Beijing accustomed to explosive announcements, the repetition and uselessness of which end up raising legitimate questions about a desire to manipulate prices. And, since the official establishment of its central bank digital currency (MNBC), a sort of digital scorched earth policy. With the last notable consequence, the WeChat social network in the midst of a crypto witch hunt.
China may seem far and out of place when it comes to regulating the cryptocurrency market. But we should never underestimate the ability of certain leaders and senior managers to always draw inspiration from the worst in the field.. Because Europe has still managed to try to ban the Proof of Work (PoW) of Bitcoin, as part of its MiCA bill. And everything suggests that nothing will work out in the field for years to come.
With the main battle horse, the current decline in the cryptocurrency market. And its problematic consequences on certain projects, even in the ranks of DeFi. And a claimed concern vis-à-vis the security of investors, which ultimately hides a more likely international monetary competition. Reason why China is in full active repression in the field. This is to pave the way for its digital yuan which the United States is already considering banning. With in its sights: cryptocurrencies and its derivatives such as NFT tokens.
WeChat – Deletion of crypto accounts
The Chinese government’s anti-crypto policy obviously has repercussions for companies operating in its territory. And it is in this case the social network WeChat which has just published new rules as part of its internal policy. And, under these, accounts involved in “issuing, trading and funding” in relation to cryptocurrencies will be restricted or even banned. But these modifications also concern – and this is a first – collections of NFT tokens. And this whether it is their promotion or any activity carried out on a secondary market. All this categorized indiscriminately as “illegal activities.” »
” It involves the issuance, transaction and financing related to cryptocurrencies. Activities such as transaction execution, issuance channel orientation, exchange between virtual currency and real currency, information intermediary and pricing services… (…) Accounts that provide services or content related to the secondary transaction of digital collections (NFT) will also be treated in accordance with this article. »
A news item made public yesterday at the end of the day on Twitter by local journalist Colin Wu (Wu Blockchain). The latter underlining the importance and the impact of this decision of the social network WeChat. A juggernaut with more than 1.1 billion daily active users in China. In particular because of the very repressive nature of this internal policy, which can go as far as the definitive closure of the accounts concerned. This “depending on the seriousness of the violation” identified. And with the possibility of correcting the situation “within a given time” if the latter is considered minimal.
China – NFTs swim in the gray zone
A decision that suggests government pressure, as part of the anti-crypto policy put in place by Beijing since last year. Because the WeChat platform could probably have let this kind of activity pass over this period. Especially if we consider the regulatory vagueness that surrounds the NFT market. Because the latter can be bought against traditional currency, but their secondary trade is simply prohibited on platforms dedicated to cryptocurrencies. This is to avoid entering into regulatory conflict with the rules of “financialization of technology.” »
A distancing dynamic vis-à-vis NFTs initiated since last March by the Ant group. The latter owner – among others – of the WeChat and WhaleTalk networks. This because of a fear of government repression from Beijing, linked to this lack of clarity.. Because members of the Chinese high authorities are firmly opposed to the proliferation of these non-fungible tokens. With the head of this vendetta, the China Banking Association, the China Internet Finance Association and the Securities Association of China. The latter having published a joint statement in April warning the public of “hidden risks” related to investing in NFTs.
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WeChat – Cryptocurrencies and NFTs equated to “illegal activity” – CryptoActu
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