A leading social networking platform, WeChat is reinforcing China’s strict policies for crypto and NFT trading. The platform will be increasing the surveillance on accounts connected with crypto tokens or digital assets. Following the policy change, web WeChat has also banned a few accounts that were involved in trading NFTs.
A crypto reporter, Colin Wu ([@WuBlockchain](https://twitter.com/WuBlockchain/status/1538839036583784448?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1538839036583784448%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fchina-s-wechat-bans-crypto-and-nft-related-accounts)), from Hong Kong, first highlighted the WeChat update. On 20 June 2022, Wu identified the change in its code of conduct section. 

## Web WeChat updated its policy for crypto and NFT trading 

WeChat has updated its terms and conditions for digital assets trading. The platform introduced the policy regarding the prohibition of crypto and NFT trading accounts in the Code of Conduct section.
As per the recent update, any involvement with digital tokens or assets will be against web WeChat’s policies. Now, it will be an offence against the law to trade NFTs and crypto tokens on the platform. 

## Key points from web WeChat update

Here are some of the key points from the WeChat update for the activities related to crypto and NFTs:

1.	Business through cryptocurrencies is prohibited.
2.	Sharing information regarding any transaction involving cryptocurrency is not allowed.
3.	Digital currency derivatives, aka non-fungible tokens trading, are also prohibited.
4.	Digital assets’ secondary transactions will be illegal. 
 
## Crypto activities might lead to ultimate ban from web WeChat

With the current development regarding a [Dogecoin](/coins/doge) investor suing the CEO of spaceX and Tesla, Elon Musk, for $258 billion, and Tech Giants like Bill Gates and Warren Buffet questioning the worth of Bitcoin, web WeChat is enroute to distance itself from the tech.

Now, accounts might face a permanent ban if they are observed to be involved in transactions related to digital currencies and assets. However, in the beginning, the platform will allow users a rectification period and will limit the features of the platform. 

If the user fails to comply with the rules, the account will be permanently banned by WeChat. In addition, the severity of the violation will determine the action web WeChat officials take against the account. As WeChat has over 1.1 billion users in China, this move reiterates China's strict policy against crypto. 

 





Web WeChat to ban users for crypto and NFT trading

## Is there a Ukraine cryptocurrency ban or not?

The National Bank of Ukraine has [implemented restrictions](https://www.kinstellar.com/locations/news-deals-insights/detail/397/1720/national-bank-of-ukraine-imposes-restrictions-on-the-purchase-of-cryptocurrencies-and-other-virtual-assets?msclkid=352c5177cf7e11ec8cedb74a0cc8134e) regarding its cryptocurrency transactions to limit the flow of money out of the country as it continues to operate under martial law.

Since the Russian invasion, $1.7 Billion was transferred out of banks in Ukraine in March and a further $900 million so far in April.

The ban is a temporary measure. It states that Ukrainians who want to buy cryptocurrencies will have to use a foreign currency other than UAH. The total monthly limit of purchases is limited to UAH 100,000 ($3,300).
The National Ukraine Bank sees crypto purchases, deposits via electronic wallets, and virtual asset purchases as quasi-cash transactions. However, regular payments made abroad and locally for goods and services do not fall under the bracket of new restrictions.

The National Bank of Ukraine believes the changes will help improve the country's fortune in the foreign exchange market. This is important for further reductions in restrictions, which will take some pressure off international reserves in Ukraine. The restrictions have raised some questions as the government of Ukraine was actively working to legalize cryptocurrencies a few days prior.

Before the invasion of Ukraine by Russia on February 24, the country was trading more cryptocurrencies than fiat. Just six days before, a bill was passed legalizing cryptocurrency and putting its regulation under the governance of the National Commission on Securities and Stock Market.

Since the war started, Ukraine has used cryptocurrencies to raise capital for the war effort. The country announced on February 26 that it would accept donations in the form of crypto, with links to two crypto wallets provided for them to receive [Bitcoin](/coins/btc), Ether, and Tether. According to a leading analytics firm within the crypto space, this led to $63.8 million being raised with more than 120,000 crypto asset donations. But as the war continues to rumble on, Ukraine’s national bank believes that if large amounts of cash leave the country, it will put significant pressure on its currency. It wants to avoid what happened to the Russian ruble shortly before the war began. 

There, food prices went up considerably, prices of imported goods skyrocketed, with some foreign-made cars more than doubling in price, and there was a lack of imports. An economist from Gazprombank predicted that annual inflation will stand at 27% by the middle of 2022. However, the ruble has returned to pre-war levels in response to sanctions from the West.

NBU believes the move to limit cryptocurrency transactions is important, even though the FX market has been balancing over the past few months. It fears that large volumes of foreign currency purchased by banks seeking international settlements will negatively affect the currency. The World Bank predicts that Ukraine's GDP will fall by 45% this year.



Ukraine Cryptocurrency Ban; What's Happening?

The Black Swan events of December may have knocked Bitcoin, the world’s most popular crypto-currency, down 30% in value this month. But, judging from the resilience of the mining activity around the world, which has experienced a full recovery since the Chinese “_ban_”, the cryptocurrency investment community has further evidence to suggest that digital currencies will continue to rebound from whatever may get thrown at them.

## The 'Mecca' of Crypto-Mining

Once upon a time, China was _the_ mecca of cryptocurrency mining with reliable estimates putting the country’s slice of the global crypto-mining pie at the 65% to 75% mark.  Then, September 2021 happened.  The communist nation with a population of 1.4 billion [essentially banned all cryptocurrency transactions](https://www.reuters.com/world/china/china-central-bank-vows-crackdown-cryptocurrency-trading-2021-09-24/), including any mining activity that was happening in the country.  The Chinese ban was thought to be the sound of the death knell for digital currencies, but, again, the cryptocurrency market has shown remarkable “comeback” potential.

The recent rebound in global cryptocurrency mining was declared by measuring what’s referred to as the [_hashrate_](https://www.yahoo.com/now/hash-rate-cryptocurrency-calculated-172307967.html#:~:text=The%20hash%20rate%20is%20the,part%20of%20the%20mining%20operation.), a term that’s used to describe the computational power of all the mining activity taking place on the bitcoin network.  Specifically, it refers to the amount of computing power per second that the cryptocurrency mining process requires.

Getting back to China, once the ban was announced last summer the cryptocurrency market may have plummeted, but the miners simply folded up their tents, packed their gear, and took their operations to countries that demonstrated a more amiable attitude towards digital currencies.  For example, the United States has been a big beneficiary of the Chinese ban – The US is a provider of plentiful, inexpensive electricity and even Kazakstan, where electricity is _even less_ expensive saw a huge migration in cryptocurrency miners.

Cryptocurrency mining has certainly received its fair share of press, especially now that the effects of the Chinese ban have been eclipsed by the market’s recent global mining activity, so it’s worth taking a moment to understand what cryptocurrency mining really is.

## What is cryptocurrency mining?

Most of society believes the cryptocurrency mining process is just a way of creating new coins.  That’s true, but there’s more involved.  Crypto mining is deemed successful once miners have validated cryptocurrency transactions on a blockchain network and then successfully add them to a distributed ledger.  Most importantly, the mining process prevents the “[double-spending](https://www.gemini.com/cryptopedia/double-spending-problem-crypto)” of digital currency.  In the most basic sense, cryptocurrency mining is the process of solving very complicated mathematical puzzles.  If you can solve them fast enough, you’re rewarded with a coin.  However, cryptocurrency miners that solve these puzzles slower than their competition _don’t_.  It’s a process called “[proof of work](https://www.investopedia.com/terms/p/proof-work.asp#:~:text=Proof%20of%20work%20(PoW)%20is,transactions%20and%20mining%20new%20tokens.).”

The most remarkable thing about this story is that a global superpower instituted a countrywide ban of cryptocurrency transactions, and less than six months later the cryptocurrency market is making a “chest thumping” statement with a full recovery.


China Crypto Ban Brushed Off as Mining Recovers

Moves to outlaw private cryptocurrencies in India are being seen as a crypto investment opportunity by some.

Maybe it was just one of those overdue ‘gut check’ moments that newer markets sometimes need to experience on their course of evolution towards maturity. After enjoying a sensational run, cryptocurrencies in India were rocked this week by the news that the government will introduce a Bill in the Parliament that could ‘outlaw’ all _private_ cryptocurrencies.

## Jitters Among Crypto Investors

Granted, the government of the country with a population of 1.4 billion said it would make certain exceptions to ‘_promote_ the underlying technology of cryptocurrency and its uses’.

The news caused jitters among newer crypto investors.

September and October brought a lot of newcomers to the digital assets market and this kind of development has produced knee-jerk reactions from investors in the past. This is particularly the case with new (as in skittish) crypto investors who are likely to jump the crypto-ship at the first sign of danger.

Not only have digital coins like Ethereum and Bitcoin enjoyed a ride to new heights in value recently because of the recent influx of funds, but a new kind of digital asset, non-fungible tokens (NFTs), even found a home in the headlines for their skyrocketing values and enigmatic characteristics.

## Meme Coins Lose Value

A closer look at India, and the [posted bulletin](http://loksabhadocs.nic.in/bull2mk/2021/23.11.21.pdf), reveals that the ban is a component of the proposed _Cryptocurrency and Regulation of Official Digital Currency Bill_ slated for introduction at the coming winter session. The legislation is purported to achieve the creation of ‘…a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India (RBI)’.

Yesterday morning, according to [Bloomberg](https://www.bloomberg.com/news/articles/2021-11-24/a-huge-arbitrage-opportunity-has-just-opened-up-in-crypto), the mega-popular coins Shiba Inu and Dogecoin had lost considerable value – more than 20% on the WazirX crypto exchange in India. The damage seemed to be relatively contained _to_ India as values of the same coins on popular exchanges remained largely unchanged.

What’s most compelling about news like the proposed ban is the opportunity it creates for arbitrage; activities where the savvy investors jump into action to pick up a few assets for a bargain price with the intention of profiting elsewhere, usually another exchange.

## WazirX Experiences Trading Delays

A [report from CoinDesk](https://www.coindesk.com/markets/2021/11/24/stablecoin-tether-crashes-on-indian-exchanges-traders-buy-the-dip/) sheds a bit of light on the phenomenon, but the shell game of buying and transferring funds to a different exchange after purchasing assets at a lower cost is much harder than it sounds.

Still, the attempts were being made and the WazirX had to send out a tweet that it was experiencing trading delays in their app after exchange users were voicing frustration that they could not move their crypto. Arbitrage opportunities in the crypto-market have long been one of the primary targets of regulatory efforts.

The good news is that 2021 will go down as a big year for cryptocurrency. It was the year that key players on Wall Street built up enough confidence to make substantial investments in the digital assets and mainstream adoption now seems achievable. Whether India’s proposed ban will have any long-term consequences is yet to be determined.

Is India ‘Ban’ Bill a Crypto Investment Opportunity?

Regulation of crypto is a major talking point right now, but Indian Prime Minister Narendra Modi’s comments on the subject have left some baffled.

Addressing the Sydney Dialogue, Modi made comments on [Bitcoin (BTC)](/coins/btc) and crypto regulation.

He said: ‘Democratic nations should work together on cryptocurrency to ensure it does not end up in the wrong hands.’

## Modi's Words on Twitter

Although it is unclear what the ‘wrong hands’ are, Modi’s words were considered important enough to be repeated on his [official Twitter feed](https://twitter.com/narendramodi).

His account tweeted: ‘Take cryptocurrency or Bitcoin for example. It is important that all democratic nations work together on this and ensure it does not end up in \[the\] wrong hands, which can spoil our youth.’

Also during the address Modi said: ‘We are at a historic moment of choice. Either all the wonderful powers of technology of our age will be instruments of cooperation or conflict, coercion or choice, domination or development.’

## Social Media Speculation

The comments sparked social media speculation that India may be on the verge of a China-style crackdown. Many, however, felt the comments meant little more than Modi supports responsible crypto regulation.

There is interest in India’s crypto stance, as the country is reported to be considering its own central bank digital currency (CBDC) project. This could arrive next year, although progress by the central Reserve Bank of India (RBI) has been considered slow.

A media report in India this week said the RBI is still examining ‘matching domestic priorities with design features’.

While limited trials of the proposed CBDC are pencilled for next month, a national rollout looks unlikely any time soon.

Despite the way some have interpreted Modi’s comments, India is thought unlikely to want to restrict crypto access in the way China has.

Do Modi's Comments Signal Crypto Shift in India?

Cryptocurrency investment communities are holding their breath as they await confirmation of the news, is it true?  There is no denying that crypto-investors are being tantalised with recent reports. Such reports suggest that China may be in the midst of reconsidering its current [bitcoin](/coins/btc) ban and other cryptocurrencies.  Such an event could trigger monumental gains in cryptocurrency. It could also set further ablaze a market that’s already been on a serious bull-run.

## Bitcoin Banned in September

In a move that smacked of suspicion right from the moment it was announced back in September, Chinese regulators had prohibited all cryptocurrency mining activities. The country cited concerns that speculative trading was “disturbing economic and financial order \[and\] breeding illegal and criminal activity." This is according to a People’s Bank of China statement.  In simpler terms, cryptocurrencies were a financial component of the communist regime’s economy that Beijing discovered was impossible to control with any amount of precision. Ironically, decentralisation is a deliberate concept of Bitcoin and one of its foundational principles.   

But the coup de grâce of September didn’t come out of the blue.  Beijing had been taking steps to impose legal restrictions on a wide array of cryptocurrency activities dating back to 2013.  Despite the Chinese government’s efforts, their crypto industry continued to thrive.

In fact, the Chinese ban has done little in terms of weakening the mainstream adoption of Bitcoin and other digital assets. The move was especially pivotal in catapulting the US to the top of the world’s crypto mining nations.  Even GOP lawmakers suddenly saw the benefit of making the U.S. a _global_ cryptocurrency hub after China's recent ban.  Since then, the value of bitcoin has doubled in price. Because of this, the Chinese government is likely experiencing second thoughts.

## Speculation Continues

For now, China has willingly forfeited “pole position” in the crypto-race.  Perhaps now they see that the most prudent _economic_ course of action is a return to the crypto-verse, even if it means doing so at much higher prices.  The speculation is continuing on social media. Reports are conflicting in terms of whether or not the country’s National Development and Reform Commission is _really_ seeking public opinion on the inclusion of crypto mining in its list of “phased-out” industries.

China hasn’t turned its back entirely on digital currencies though.  The communist regime has been doing some experimentation with a digital form of currency that converts to their own official currency, the yuan.  China conducted some tests on [the digital state-backed version](https://www.db.com/news/detail/20210714-digital-yuan-what-is-it-and-how-does-it-work) of the yuan, in April of 2021. It doesn’t require an internet connection to make transactions and the functionality has been compared to Apple Pay.  If successful, the digital currency is expected to evolve as one of the communist nation’s primary payment methods.

Why China _really_ banned cryptocurrencies in the first place is still a subject of debate.  Perhaps China sees Bitcoin for what it truly is and became frightened by its power.  A resourceful tool against a government that wants total control over its citizens.



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