China’s cryptocurrency ban reflects a trend toward greater state intervention in economic policy. China’s cryptocurrency ban is a response to concerns that cryptocurrencies are facilitating capital flight from its markets, bypassing conventional controls. China’s central bank argues that cryptocurrency bans are necessary to prevent financial crime and economic instability. Amidst China’s battle with blockchain, Tencent has banned the discussion of cryptocurrency mining and blockchain-based assets on its WeChat and Weixin platforms.
In recent amendments to its terms of service, Tencent added a section about cryptocurrency and NFTs. According to the added language, accounts engaged in crypto trading, converting bit-bucks to real money, or providing pricing services for digital currencies need to stop doing so. Account-holders whose chats veer into the topics described above will be warned, and Tencent may restrict their account functions. Discussions of forbidden crypto will result in account suspension.
Middle Kingdom’s Network to Only Promote Chinese Values, Shuts Down Crypto Projects & Mining Activities
Tencent hasn’t explained the reason for the change, but it’s almost certainly a response to Beijing’s ongoing crackdown on crypto and a parallel program that demands Chinese web giants clean up their acts. The Middle Kingdom’s networks must provide only wholesome content that promotes Chinese values – even in users’ comments, which will soon be inspected and approved before being published. Chinese officials think crypto is an unruly innovation, and mining it is a waste of resources. The country created its own central bank digital currency, a form of digital cash, and is promoting it vigorously, including on WeChat as a payment method.
Tencent’s stance, therefore, allows its platforms – which have more than a billion users – to serve as platforms for China’s very traceable digital cash, but not to host content about alternative currencies. China’s Digital Yuan was also created in response to its big tech companies creating their own payment platforms. In China, AliPay and WeChatPay are widely used and may have paved the way for easy acceptance of the Digital Yuan.
Via this site Tencent’s WeChat wants no more talk of cryptocurrency and NFTs – The Register
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Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
