Alipay, WeChat Remove Crypto Transactions On Payment Platforms
In the latest cryptocurrency news, two of the biggest Chinese mobile payment platforms are planning to remove all of their crypto transactions on payment platforms. These are none other than WeChat Pay and Alipay. They are reportedly scrambling to keep up with regulators after recent announcements regarding initial coin offerings (ICOs) and cryptocurrencies.
Monitoring Crypto Transactions
Both payment giants have said revealed their plans on removing crypto transactions. The decision came after they announced their discussion with different government agencies. The goal is to simply help the said agencies in closely monitoring all digital asset-related transactions. An official statement was released on August 24, detailing the decision made by Alipay Chat and WeChat.
As the reports surfaced on Friday, they suggest that at least five high-level regulatory agencies, all based in China, issued a warning, particularly on any cryptocurrency-related transactions, including fundraising and trading activities. Among the aforementioned regulatory agencies include the People’s Bank of China and the Banking Regulatory Commission.
Problematic Platforms
In a statement released and published by Tencent, which is basically the parent company of WeChat Pay, the company said that it has come up with three main measures to regulate any “problematic” platforms related to ICOs and cryptocurrencies. It is worth noting, though, that the decision came not long after the news came out.
Specifically, the tech giant said that its goal is to start prohibiting users from using WeChat payments in order to make any virtual currency-related transactions. In addition, it will perform real-time monitoring of each transaction on a daily basis. This already includes a process that will also assess all possible risks relating to any suspicious transactions.
At the same time, in an exclusive interview with a news publication that is based in Beijing, Alibaba Group affiliate Ant Financial, which owns Alipay, said that depending on the situation, it will restrict or permanently ban any personal Alipay accounts that are involved in cryptocurrency transactions.
There has yet to be official reports on when exactly this new process will be implemented. But given the urgency the agencies stated, it is expected to arrive anytime soon. As of press time, Alipay Chat and WeChat did not give out any comment on how this new policy will affect their overall transactions. It is interesting to see, however, how this will influence the tech giants’ payment processes in the near future.