China closes the Blockchain accounts on WeChat

In a new crackdown on cryptocurrency activities, China has blocked several blockchain-related news accounts on WeChat, one of its best social apps.

WeChat Crypto Accounts Shuttered

In 2017, China imposed a ban on ICOs because of their unregulated nature and the scams associated with them. The recent ban was imposed due to the non-compliance of the "national interests" and "public orders" by the accounts, as it was discovered that the affected accounts publish information on initial coin offerings (ICO) and on cryptocurrency trading.

The ban includes the accounts of some of the country's largest cryptocurrency platforms, such as Jinse Caijing, Shenlian Caijing, Huobi News, according to reports, although their sites and apps are still functioning. The broad user base of over one billion users of WeChat has been exploited to reach its niche audience. Their revenue models included sponsored content on upcoming ICO projects. The information provided on these accounts was crucial for blockchain enthusiasts and cryptocurrency investors who were trying to stay up-to-date on blockchain projects and cryptocurrency price movements.

In May, WeChat suspended a third-party blockchain app that allowed users to create contractual agreements and a single social media ID that uses blockchain to ensure the authenticity and reliability of their identity and contents.

China is big on the blockchain, but not on cryptocurrencies

Although the government does not support ICOs and cryptocurrencies because of its financial concerns, stability and security, the country has actively explored the blockchain technology for its implementation in various sectors and processes.

In 2017, the country imposed a total ban on ICOs and cryptocurrencies, after issuing several warnings on the trade in cryptocurrency. According to reports, the ban has not proven to be very effective and ICOs are still going strong.

Chinese investors are still investing in cryptographic assets with the help of various cryptocurrency bags operating illegally in the country. Some of the exchanges have moved out of the country for now to circumvent the regulations, but are continuing to provide their services to foreign and domestic investors. Ico are also continuing to proliferate, challenging the imposed regulations. The Chinese Central Bank, however, believes that the ban on cryptocurrency has been successful as recent data suggest that the Chinese yuan now accounts for less than 1% of all crypto operations.

The exploration of Blockchain in the country is in full swing, as the government and major companies are trying to implement it through various processes and take advantage of the efficiency gains offered by it. WeChat tested the blockchain to induce efficiency and accuracy in reimbursing employee expenses. China Aerospace is developing a blockchain billing system to increase its existing electronic invoicing system and allow greater traceability and accuracy of records.

Zheshang Bank, one of China's largest commercial banks, said it had completed a blockchain-issue issue worth $ 66 million, becoming one of the country's first institutions to use blockchain for such issue .

 Image from Shutterstock 
Source link