The popular massaging app in China mainland with more than a billion of active users, WeChat has reportedly banned cryptocurrency trading and other crypto related activities under its payment policy. The application by Tencent has announced that with his updated policy, users who take part in cryptocurrency payments on the app will get their accounts terminated.
As per the new report from the messaging giant the updated policy that says users “may not engage in illegal transactions such as virtual currency trading”. The new stand will come into force at the end of the month (on 31st May) and all accounts that violets the law will get disappear from the platform.
China is always been known to put stringent law on cryptocurrency and with the recent ban on exchanges operating in the country, WeChat is supposed to reformat itself under the succumbed pressure from the government.
WeChat, the Chinese social media app equivalent to WhatsApp is a prominent channel for cryptocurrency activities in the country including Over the Counter (OTC) trading. According to primitive venture founding partner Dovey Wan, the updated policy related to banning could affect the local liquidity pool in China to a certain extent.
Though the news that comes after the ban on crypto mining in the country is expected to hit hard on the cryptocurrency industry in the region, however, binance CEO, Changpeng “CZ” Zhao seems excited with it. He commented on the updated policy that “this is a classic example of short term pain and long term gain…” and further elaborated his statement saying “it is inconvenient for people short term, they take a hit. But long term, It is precisely this type of restriction of freedom that will push people to use crypto. Not a bad thing.”
However, Binance CEO also noted that “honestly it is hard to beat WeChat pay if they are relatively open. But more and more restrictions are forced upon them (probably not their own choice). Go #crypto!”
This is not the first time Tencent has strike by china’s cryptocurrency law. Last year too, WeChat has banned around 8 cryptocurrency media outlet for publishing cryptocurrency trading information and ICO details.