WeChat bans cryptocurrency transactions in its payment channels

Chinese social-media and payments app WeChat has updated its payment policy, stating that users who engage in crypto trading will have their accounts terminated.

The policy revision states that “merchants may not engage in illegal transactions such as virtual currency [trading]” or token issuing, alongside other banned payment outlets like pornography or online gambling. The new rule comes into effect at the end of the month, on May 31.

China has particularly stringent rules when it comes to cryptocurrency, with exchanges banned from offering services in the country, meaning WeChat may have succumbed to government pressure. Binance CEO Changpeng “CZ” Zhao said that it was “probably not [WeChat’s] own choice” in a tweet, suggesting that the new restrictions could create an opening for crypto companies to eat WeChat’s lunch on the payments side of its business.

WeChat is a dominant channel for over-the-counter (OTC) cryptocurrency transactions in China, according to founding partner of Primitive Ventures Dovey Wan, meaning the policy-change could strain the liquidity pool in the region.

[HT: TheBlock]


This is why we exist. YEN.io shall replace these types of tech stacks that fall to government over-reach.


via https://www.coindesk.com/


WeChat, the dominant messaging application in China operated by technology giant Tencent, has updated its payments policy that will prevent merchants on the platform from engaging in cryptocurrency-related activities.

The messaging giant updated its Payment Service Protocol on April 30, indicating that merchants using its service shall not, among other things, “either directly or indirectly,” be involved in “any initial coin offering activities or operating virtual currency trading.”

With the new policy taking effect on May 31, WeChat will terminate its payment services for merchants that are found of violation. However, the policy update did not label crypto-related activities as “illegal transactions,” a fact misinterpreted by various Chinese crypto media.

The new policy could have an impact on over-the-counter (OTC) traders in China who are using WeChat Pay as one of the options for transacting Chinese yuan. Exchanges like Huobi and OKEx both offer their platforms for OTC market makers as well as individual users to place bid and ask orders to exchange fiat to crypto, vice versa.

However, it’s also important to note that the payment policy update is addressed to merchants on WeChat Pay, referring to account holders who have registered as a merchant or corporate user, as opposed to retail individuals.

That said, the policy update follows WeChat’s long-time stance of banning users from using its platform to engage in crypto-related transactions.

Since August last year, WeChat and Alibaba’s payment affiliate Ant Financial have both taken efforts to monitor and suspend user accounts that are suspected of being involved in crypto trading.


I’m still finding it amusing why anyone is surprised when China is making their own Digital Currency.

Of course you ban all the others, it’s the Govt way to make your own one successful.

It’s not like other countries (India, Iran, Russia and so on) are not doing EXACTLY the same thing.

It is actually a good thing and I fail to understand why there is any negativity. In order to bring forth the next DIGITAL FOREX, this has to happen. After it is in place, guess what the next step is? That’s right, you bring in all the Cryptos as a Forex to your own Digital Currency creating the next Financial revolution of technology.

So far, I see everything going to plan :slight_smile:

Stay Fishy


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