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WeChat cracks down on use of the platform for fraudulent financial advertising

Thursday 14 July 2022 11:20 CET | News

WeChat, a China-based social media giant, has announced it is cracking down on use of the platform for the purpose of fraudulent financial advertising and promotions.
WeChat bans fraudulent financial advertising

WeChat announced that it was ‘banning the implementation of fraudulent sales and promotions in the financial category,’ including fraudulent wealth management content promising high returns; fraud making use of ‘new concepts’, including the shared economy, the Internet of Things, and cryptocurrencies; exaggerated and false financial sales and promotions; misleading financial sales and promotions; unqualified financial sales and promotions.

WeChat said that the new rules are for the purpose of protecting the lawful rights and interests of financial consumers, as well as preventing and controlling legal risk in relation to financial sales activities.

The announcement from WeChat arrives following the release of the ‘Notice Concerning Further Standardisation of Financial Sales and Promotions Conduct’.

Policy updates

Earlier in 2022, WeChat has updated its policies to ban accounts that provide access to crypto or nonfungible token (NFT)-related services.

Under the guidelines, accounts involved with the issuance, trading, and financing of crypto and NFTs will be either restricted or banned and will fall under the ‘illegal business’ category. The policy also covers secondary NFT trading.

Popular platforms such as WeChat and WhaleTalk have been distancing themselves from the tech since March 2022 after they both reportedly began removing or restricting NFT platforms from their networks over a lack of regulatory clarity and fear of a crackdown from Beijing.


Source: Link


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Keywords: fraud prevention, wealth management, IOT, cryptocurrency, regulation
Categories: Fraud & Financial Crime
Companies: WeChat
Countries: China
This article is part of category

Fraud & Financial Crime

WeChat

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