WeChat Prevents Merchant Users From Crypto Trading

| Publish date: 05/08/2019
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WeChat is making a huge move in the crypto space, although it is not necessarily good news for all enthusiasts out there. It appears that the dominant messaging application, which is based in China and operated by technology giant Tencent, has recently updated its payments policy. Apparently, this update will ban disable merchants on its platform from engaging in any activities related to digital currencies.

Banning Crypto Trading

According to the official report, the messaging giant decided to bring a new update designed for its Payment Service Protocol. The update, in particular, suggests that merchants utilizing its service must not be involved in any ICO or initial coin offering activities. Even more so, they are not allowed to be involved – be it directly or indirectly – in any crypto trading.

The policy, which is expected to be officially activated come May 31, suggests that WeChat is going to ban merchants from using its payment services if they are guilty of a violation. Interestingly, though, the policy does not necessarily deep digital currency-related activities as “illegal transactions,” although the entire Chinese cryptocurrency media believes so.

The new policy from WeChat is expected to bring forth a significant impact on a variety of areas, one of which is the over-the-counter (OTC) traders in the country. These are those who, according to the report, are fond of utilizing the messaging giant as one of their means for the currency called Chinese yuan.

It is worth noting that a good number of exchanges, with Houbi and OKEx being the most popular ones, are known for offering their respective platforms for OTC market makers. They also do so to individual users, allowing them to both place bid and ask orders in order to exchange fiat to digital currency and vice versa.

The Effect of the Ban

However, it should also be noted that the upcoming policy update from the messaging company is directly addressed to the company’s merchants. The latter, in particular, refer to account holders who decided to register themselves as either merchants or corporate users, which, either way, is the complete opposite of being retail individuals.

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With that said, the controversial update reportedly follows the tech firm’s long-time stance of preventing its users from taking advantage of its platforms when it comes to crypto-related activities.

In fact, the company and even Alibaba’s very own payment affiliate called Ant Financial have both performed efforts in monitoring and suspending user accounts that are believed to be involved in digital currency trading.

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